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(For Internal Use Only) UCO BANK DOCUMENTATION MANUAL LAW JULY, 2007 i

UCO BANK

DOCUMENTATION MANUAL

LAW

JULY, 2007

i

Je. ¶e"h

Je. ¶e"h

gqfUtu cîfU

Œ"tl fUtgtoÖtg

 

10,

rc. ºti

b. mhKe,

V. V.

V.

V.

V.

SRIDAR

SRIDAR

SRIDAR

SRIDAR

SRIDAR

Chairman & Managing Director

fUtuÖtfUt;t-700 001

UCO BANK

Head Office

 

10,

B. T.

M.

Sarani

Kolkata-700 001

FOREWORD

Lending is one of the important activities in banking. In all lending transactions, there is an agreement between the lender bank and the borrower customer. In banking parlance such agreements are written statements, declaring certain rights, obligations, responsibilities and liabilities of various parties involved in the transactions and matters incidental thereto and which are admissible in law as a piece of evidence called ‘‘Documents’’. Thus, documents form vital records for all lending operations/transactions and are to be taken correctly by a banker. Any lapse of shortcoming in documents may cause substantial losses to the Bank.

Although the Bank’s Manual of Instructions on Advance has listed the documents to be taken, there is a need for assembling all of them in one place for ready reference by the staff members before disbursal of sanctioned credit facilities.

I am pleased that Head Office, Law Department, under the leadership of Shri P. K. Das, General Manager, has undertaken the task of putting the various documents in a separate ‘Manual of Documentation’. The task was no doubt stupendous, but an urgent requirement. The volume prepared by them includes all the documents in use at our Bank with guidelines how to execute them in various credit dispensations.

I am sure all the staff particulrly the Branch Managers will be benefited by the Manual which will enable them to ensure proper documentation for advances.

Je. ¶e"h gqfUtu cîfU Œ"tl fUtgtoÖtg 10 , rc. ºti b. mhKe, V. V. V. V.

(V. SRIDAR)

Dated, Kolkata 4th July 2007.

Phone : 2225 4094, 2225 3350 Fax : 2225 3986 E-mail : cmdsec.calcutta@ucobank.co.in

ii

P K DAS

General Manager [Law]

P K DAS General Manager [Law] PREFACE UCO BANK Head Office : Law Department 1, R.

PREFACE

UCO BANK

Head Office : Law Department 1, R. N. Mukherjee Road, 3rd fl., Kolkata-700 001.

Taking correct and proper documents is a ‘sine qua non’ while disbursing loans and advances. In the Bank’s ‘Manual of Instructions, Volume-6, General Advances’, Chapter-14 deals with various documents to be taken by the branches. The contents therein do not cover all types of documents. In the meantime, the Bank has introduced various innovative credit schemes in the competitive market scenario. This has necessitated to put in one place all types of existing documents, vis-à-vis the respective credit facilities and also required guidelines for executing those documents correctly. Hence, a need was felt to bring out a comprehensive ‘‘Manual of Documentation’’ incorporating all documents for use as ready reference by the members of staff of the Bank.

Our revered Chairman & Managing Director, Shri V. Sridar directed the Head Office, Law Department to undertake the task of preparing a documentation manual keeping in view the above necessities. Accordingly a team of legal experts comprising of Shri B. K. Sil, Ex. Asstt. General Manager (Law), Shri S. Bhattacharyya, Ex. Asstt. General Manager (Law) and Ms. Tulika Ghosh, Law Officer was formed in our department under overall supervision of the General Manager (Law) to write the Manual.

The ‘Manual of Documentation’ is a compilation of all the existing formats of documents to be taken by branches while disbursing loans and advances to different types of borrower in respect of different credit facilties sanctioned to them.

There

are

9

(nine) chapters in this Manual, which, inter alia, include the basic definition,

purpose, importance, various formats of existing documents in use in the Bank and most

importantly the guidance to execute different documents correctly so that they may be produced in the courts of law as evidences whenever necessary.

It has been our experience that branches

often

lack in initiating

steps

to

obviate law of

limitation, creation of charges and registration of charges as per requirements of existing/ amended rules. This manual has provided guidance to deal with those situations. We have tried to compile all existing documents in respect of all types of credit facilities extended by the Bank as per the latest circulars issued by Head Office.

iii

In a dynamic situation as we are, there may be changes/modifications giving rise to innovative/ new documents. We shall strive to bring those as addenda and/or amendments as and when warranted.

We have taken all care against factual errors and typographical mistakes. Nevertheless, if any omission is noted, we shall be thankful to be pointed out about those for our correction/ clarification.

We express our deep gratitutde to CMD for all the encouragement given

to

bring out

this

manual and thank the team for their hard work. Our efforts will be worthwhile if this Manual

comes handy

and helpful for the staff members

of

the Bank

for

whom it has been brought

out.

In a dynamic situation as we are, there may be changes/modifications giving rise to innovative/ new

(P.

K.

Das)

General Manager (Law)

Dated, Kolkata 4th July 2007.

iv

UCO BANK

CONTENTS

CHAPTER – 1

INTRODUCTION

DOCUMENTATION MANUAL

  • 1. General .................................................................................................................

1

  • 2. What is a Document ...........................................................................................

1

  • 3. Purpose ................................................................................................................

1

  • 4. Requirements of a Document ............................................................................

2

  • 5. Importance of Documentation

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

3

  • 6. Some Important Documents ...............................................................................

3

 

CHAPTER – 2

ADVANCE AGAINST GOODS AND WAREHOUSE RECEIPTS

 

General ........................................................................................................................

11

 

CHAPTER – 3

ADVANCE AGAINST IMMOVABLE PROPERTIES

 
  • 1. General .................................................................................................................

12

  • 2. Draft of Letter

Annexure I

:

of

Undertaking to be obtained from the

applicant for advances against Immovable

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

13

  • 3. Draft of Letter authorising a person to deposit Title

Annexure II

:

 

Deeds of Property for creating Equitable Mortgage

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

14

  • 4. Draft

Annexure III

:

of

entry to

be made in Equitable Mortgage

Register in respect of property standing in the

 

name of one or more individuals

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

15

  • 5. Draft

Annexure IV

:

of

entry

to

be made

in Equitable Mortgage

Register in respect of property standing in the

 

name of partnership

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

16

  • 6. Draft of

Annexure V

:

Entry to

be made in Equitable mortgage

Register in respect of property standing in the

 

name of Limited

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

17

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UCO BANK

DOCUMENTATION MANUAL

  • 7. Letter of

Annexure VI

:

Draft of

Deposit of Title Deeds to be obtained

 

from the

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

18

  • 8. Draft of Letter to be obtained from mortgagor(s) for

Annexure VII

:

covering increase in

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

19

  • 9. Draft of

Annexure VIII :

entry to

be made in Equitable Mortgage

Register owing to increase in limits

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

20

10. Annexure IX

:

Draft of letter to be obtained from mortgagor(s) for deposit of additional Title Deeds with or without

increase in limits

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

21

CHAPTER – 4

ADVANCES AGAINST FIXED DEPOSIT RECEIPTS, KUBER YOJANA RECEIPTS, MONEY MULTIPLIER (UCO DOUBLE/UCO TREBLE) RECEIPTS, LAKHPATI DEPOSIT RECEIPTS, DEPOSIT CERTIFICATES, FLEXIBLE-FIXED DEPOSIT, RECURRING DEPOSIT(RD)/MONEY BACK RECURRING DEPOSITS (MBRD), LIFE INSURANCE POLICIES, UNITS ISSUED BY UNIT TRUST OF INDIA, SHARES

  • 1. Advances Against Fixed Deposit Receipts, Kuber Yojana Receipts, Money Multiplier (Uco Double/Uco Treble) Receipts, Lakhapati Deposit Receipts, Deposit Certificates ...............................................................

23

  • 2. Loan/advances against Flexible-Fixed Deposit ..................................................

23

  • 3. Advances against Recurring Deposit(RD)/Money Back Recurring Deposits (MBRD) .................................................................................................

23

  • 4. Advances against Life Insurance Policies

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

23

  • 5. Advances against Units Issued By Unit Trust of India ....................................

23

  • 6. Advances against Shares ...................................................................................

23

CHAPTER – 5

REGISTRATION OF CHARGES WITH THE REGISTRAR OF COMPANIES – MCA 21 – e – GOVERNANCE PROGRAMME

  • 1. General .................................................................................................................

24

  • 2. : Form 8 ....................................................................................

Annexure – 1

25

  • 3. : Form 17 ..................................................................................

Annexure – 2

30

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UCO BANK

CHAPTER – 6

DOCUMENTATION MANUAL

UCO RENT – SCHEME FOR FINANCING RENTAL RECEIVABLES

  • 1. General .................................................................................................................

32

  • 2. Annexure: Agreement for Assignment of Rent .................................................

33

 

CHAPTER – 7

 

ADVANCES ON CONSORTIUM BASIS : SINGLE WINDOW CONCEPT OF LENDING (SWCL) BY BANKS – DOCUMENTATION

 
  • 1. General .................................................................................................................

38

  • 2. : Resolutions to be passed by the Borrower’s Board of Directors ....................................................................

Annexure 1

39

  • 3. Resolutions to be passed by the ‘B’ Bank’s Board of Directors ....................................................................

Annexure 2

:

44

  • 4. Resolutions to be

Annexure 3

:

passed

by

the Boards

of ‘C’ Bank,

 

‘D’ Bank and ‘E’ Bank .............................................................

46

  • 5. Letter of Authority to

Annexure 4

:

be

given

by ‘B’ Bank, ‘C’ Bank,

 

‘D’ Bank

and ‘E’ Bank

to ‘A’ Bank

(the leader Bank) ..........

47

  • 6. Letter of Authority to

Annexure 5

:

be

given

by ‘C’ Bank, ‘D’ Bank

 

and ‘E’ Bank

to

‘B’ Bank .........................................................

49

  • 7. : Working Capital Consortium Agreement .................................

Annexure 6

51

  • 8. : Joint Deed of Hypothecation ...................................................

Annexure 7

83

Annexure 8

  • 9. :

Inter Se Agreement

between

A

Bank, B

Bank, C Bank,

D Bank and E Bank ................................................................

98

  • 10. : Revival Letter ............................................................................

Annexure 9

108

  • 11. : Working Capital Facilities .........................................................

Annexure 10

109

 

CHAPTER – 8

 

UCO SHELTER SCHEME

1.

List of Documents for UCO Shelter for Individuals ..........................................

110

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UCO BANK

DOCUMENTATION MANUAL

  • 2. Appendix I : Letter for giving in-Principle Sanction - Annexure III .........

112

Appendix II

  • 3. :

Format for

Report

on

the Visit

of the

site

of the

 

proposed property Annexure IV

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

113

  • 4. : Process Note for in-Principle and Regular Sanction – Annexure VI ............................................................................

Appendix III

115

  • 5. Appendix IV : Format for Regular Sanction Advice – Annexure IX ..........

119

  • 6. : ATTESTATION MEMO

Appendix V

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

123

  • 7. : Statement of means Annexure –II(ii) ...................................

Appendix VI

124

  • 8. Appendix VII

:

Format of letter

to

be issued to the Transferor

 

Bank

after sanction of Loan (in case of Take-Over)

Annexure VIII

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

127

  • 9. Appendix

VIII

:

Loan Agreement (AHL-6) ......................................................

129

  • 10. Revival letter for the purpose of extending the

Appendix IX

:

 

limitation period (AHL-7)

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

146

  • 11. Revival letter for the purpose of extending the

Appendix X

:

 

limitation period (AHL-8)

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

147

  • 12. Appendix XI : Letter of Assignment for LIC Policy (AHL-9) ......................

148

Appendix XII

  • 13. :

Recital (to be entered in the Bank’s Equitable

Mortgage Register) evidencing creation of such mortgage (AHL-10) ................................................................

149

  • 14. : Confirming Letter

Appendix XIII

(by

Regd. Post) of such

 

mortgage (AHL-11) ................................................................

151

  • 15. : Lawyer’s Search Report on letter head regarding good and marketable title of the property (AHL-12) ..........

Appendix XIV

153

  • 16. : Letter of Guarantee (AHL-13) ...............................................

Appendix XV

154

  • 17. : Letter of undertaking an indemnity by the applicant/ mortgagor in cases of agreement to purchase a flat from promoter/builder (AHL-14) ............................................

Appendix XVI

160

Appendix XVII

  • 18. :

Letter

from the

Society in case of Co-operative

 

Flats (AHL-15) ........................................................................

162

  • 19. Appendix XVIII : Letter of Authority of appropriation of retiring benefits from borrower to his employer (AHL-16) .............................

163

  • 20. Appendix XIX

: Letter by the mortgagor/employee to his employer for deduction of EMI (AHL-17) ...................................................

165

viii

UCO BANK

DOCUMENTATION MANUAL

  • 21. : Letter from builders/promoters/owners (on letter head) assuring good title and other assurances (AHL-18) ...........

Appendix XX

166

  • 22. : Letter requesting creation of equitable mortgage (AHL-19) ................................................................

Appendix XXI

168

  • 23. : Affidavit-cum-undertaking by the applicant agreeing to deposit the sale deed when obtained (AHL-20) ............

Appendix XXII

169

  • 24. Appendix XXIII : Non encumbrance certificate and detailed report on title (to be submitted on Advocate’s letter head) Annexure V .............................................................................

171

  • 25. Appendix XXIV : Verification of present employment Annexure II(i) ..............

172

  • 26. Demand Promissory Note (i)A1 (ii) A1A (iii)A2 (iv) A2A .................................

 

CHAPTER – 9

SCHEME FOR FINANCING REAL ESTATE PROMOTERS/DEVELOPERS

 
  • 1. General .................................................................................................................

174

  • 2. Annexure –

1

:

Agreement for Cash Credit to be entered into between the Borrower/ Developers and the Bank .................

175

  • 3. Annexure – 2 : A Tripartite Agreement to be entered into between the Borrower/ Developer, the Intending Purchaser and the Bank ............................................................................

196

 

CHAPTER – 10

UCO TRADERS SCHEME

General ........................................................................................................................

203

 

APPENDIX

  • 1. A – 1 ....................................................................................................................

206

  • 2. A – 2 ....................................................................................................................

  • 3. A – 3 ....................................................................................................................

207

  • 4. A – 4 ....................................................................................................................

208

ix

UCO BANK

DOCUMENTATION MANUAL

  • 5. A – 5 ....................................................................................................................

210

  • 6. A – 6 ....................................................................................................................

214

  • 7. Schedule of Pledge .............................................................................................

216

  • 8. A – 7 ....................................................................................................................

218

  • 9. A – 8 ....................................................................................................................

220

  • 10. A

8A

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

230

  • 11. A – 8B .................................................................................................................

234

  • 12. A – 9 ....................................................................................................................

238

  • 13. Schedule of Hypothecation .................................................................................

253

  • 14. Form of Suppemental Deed of Hypothecation of Goods for increase in Limit/Facility without Additional Property as Security ...................

255

  • 15. Form of Suppemental Deed of Hypothecation of Goods for Additional Security for an Increase in Limit/Facility ..........................................

256

  • 16. Form of Suppemental Deed of Hypothecation of Goods for

Additional Security for an Existing Limit/Security

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

258

  • 17. A – 9A .................................................................................................................

260

  • 18. A – 9B .................................................................................................................

283

  • 19. A – 9C .................................................................................................................

293

  • 20. A – 9 D ...............................................................................................................

312

  • 21. A – 12 ..................................................................................................................

319

  • 22. A – 12A ...............................................................................................................

321

  • 23. A – 21 ..................................................................................................................

326

  • 24. A – 21A ...............................................................................................................

329

  • 25. A – 27 ..................................................................................................................

334

  • 26. A – 36 ..................................................................................................................

348

  • 27. A – 38 ..................................................................................................................

354

  • 28. A – 38 (Revised) .................................................................................................

358

  • 29. A – 38A ...............................................................................................................

360

  • 30. A – 39 ..................................................................................................................

362

  • 31. A – 40 ..................................................................................................................

364

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UCO BANK

DOCUMENTATION MANUAL

  • 32. A – 43 ..................................................................................................................

367

  • 33. A – 43A ...............................................................................................................

370

  • 34. A – 47 ..................................................................................................................

373

  • 35. A – 49 (Revised) .................................................................................................

374

  • 36. A – 49B ...............................................................................................................

379

  • 37. A – 58 ..................................................................................................................

390

  • 38. A – 65 ..................................................................................................................

393

  • 39. A – 68 ..................................................................................................................

394

  • 40. A – 88B ...............................................................................................................

400

  • 41. A – 93 ..................................................................................................................

405

  • 42. A – 97 ..................................................................................................................

406

  • 43. A – 98 ..................................................................................................................

408

  • 44. A – 100 ................................................................................................................

409

  • 45. A – 101 ................................................................................................................

413

  • 46. A – 103 ................................................................................................................

416

  • 47. A – 103A .............................................................................................................

433

  • 48. A – 104 ................................................................................................................

440

  • 49. A – 105 (Agri) .....................................................................................................

449

  • 50. A – 107 ................................................................................................................

471

  • 51. A – 107A .............................................................................................................

476

  • 52. A – 109 ................................................................................................................

479

  • 53. FR – 2 (Revised) ................................................................................................

488

  • 54. FR – 126 .............................................................................................................

496

  • 55. S – 14 ..................................................................................................................

498

  • 56. JAL – 70 ..............................................................................................................

500

xi

(fuUJÖt ytk;rhfU Wvgtud nu;w)

(FOR INTERNAL USE ONLY)

ŒÖtuFefUhK vwrô;fUt

DOCUMENTATION MANUAL

rJr" / LAW

Œ"tl fUtgtoÖtg / HEAD OFFICE

rJr" rJCtd

LAW DEPARTMENT

10, ce. xe. Yb. mhKe (7Jtk ;Öt), fUtuÖtfUt;t-700 001

10, B. T. M. SARANI (7th Floor), KOLKATA-700 001

Printed by : A. K. Banerjee

& Bros.

Printed by : A. K. Banerjee

&

Bros.

Kolkata-700 001

Kolkata-700 001

(fuUJÖt ytk;rhfU Wvgtud nu;w)

(FOR INTERNAL USE ONLY)

ŒÖtuFefUhK vwrô;fUt

DOCUMENTATION MANUAL

rJr" / LAW

Œ"tl fUtgtoÖtg / HEAD OFFICE

rJr" rJCtd

LAW DEPARTMENT

10, ce. xe. Yb. mhKe (7Jtk ;Öt), fUtuÖtfUt;t-700 001

10, B. T. M. SARANI (7th Floor), KOLKATA-700 001

Printed by : A. K. Banerjee

& Bros.

Printed by : A. K. Banerjee

&

Bros.

Kolkata-700 001

Kolkata-700 001

xii

UCO BANK

General

CHAPTER – 1

INTRODUCTION

DOCUMENTATION MANUAL

CHAPTER-1

This Documentation Manual has been intended for the convenience of the branches to com- pile all the existing formats of documents to be taken by branches while disbursing advances to different types of borrowers, in respect of different credit facilities sanctioned to them.

As regards documentation, renewal of documents, advances against goods, and other cur- rent assets including book debts and immovable properties and also against Term Deposits, LIC Policies, NSCs, Govt. Securities, Shares, Debentures and also for recovery of advances and legal action and execution of decree, detailed guidelines have already been provided in Bank’s ‘Manual of Instructions’, Vol-VI, Advances (General), which the branches are advised to scrupulously follow. Hence it has not been felt necessary to repeat the same in this Manual of Documentation.

What is a Document

Section 3 of the Evidence Act defines “Documents” as any matter expressed or described upon any substance by means of letters, figures or marks or by more than one of those means which is intended to be used for the purpose of recording that matter. Therefore, document is a written statement of facts declaring certain rights, obligations, responsibilities and liabilities relating to or concerning or in respect of the transactions or the parties or the ownership and / or possession of the property and for matters incidental thereto and which is admissible in law as a piece of evidence or a record of bargain/transaction.

Purpose

The main purpose of obtaining documents is to secure the advances and enable the Bank to recover the dues through legal means when all other recourses fail. Documentation proc- ess attempts to ensure the following:

Documentation assumes special significance in the following instances:

  • a) Identify the parties.

  • b) Identify the nature and extent of security

  • c) For providing evidence of the transactions and borrower’s debt to the Bank

1

UCO BANK

DOCUMENTATION MANUAL

CHAPTER-1

  • d) To prove that the charge created on maintainable and enforceable.

the Borrower’s assets as security for the debt is

  • e) For settling/ crystallising the terms and conditions

    • f) For defining the rights and liabilities of parties or under the securities

  • g) For creating the charges/encumbrances

  • h) For protecting the priority of charges

    • i) For computing the period of limitation

    • j) For enforcing the rights under the documents.

  • k) To claim against the legal representatives, official receiver/liquidator, etc.

    • l) To prove Bank’s prior charge in respect of assets charged to the Bank against the claims by Government Departments, other creditors, etc.

  • m)

    To ensure that the Bank’s right to enforce the recovery of the debt through a court of law is not allowed to become time-barred under the law of limitation.

    As documents form

    the primary evidence

    in any dispute

    between

    the Bank and

    the Bor-

    rower, it is imperative that they are correct and valid at all times. Documentation, therefore, is a continuous and on-going process covering the entire period of advance.

    Requirements of a Document

    A document to serve the above purposes and objects must contain correct description of the parties, mention the actual place of execution, mention correct date of execution, con- tain accurate description of the properties/securities, contain proper recitals / covenants, pro- vide for consideration for the transaction, stipulate the terms and conditions of repayment, contain all other essential terms and conditions, be duly stamped and must be registered and attested wherever the Law requires the document to be so registered and attested. The documents to be executed by the Borrower(s) / Guarantor(s) in favour of the Bank depends upon the type of charge (Hypothecation, Pledge, Mortgage, etc.), type of the advance (De- mand Loan, Cash Credit, Term Loan, etc.), nature of the security (movable or immovable, actionable claims, etc.) and finally upon the constitution of the Borrower(s) / Guarantor(s) (Individual, Partnership Firm, Company, Association of Persons, Trust, HUF, etc.). While ob- taining the security documents, regard must be had to the constitution of the Borrower(s) / Guarantor(s) and its / their authority and competence to execute the documents, the nature and type of securities being the charge, legal nature of the charges and applicable laws thereto.

    2

    UCO BANK

    Importance of Documentation

    DOCUMENTATION MANUAL

    CHAPTER-1

    The Loan / security documents are of crucial importance to the Bank in respect of all loans and advances as they constitute the primary evidence in any legal proceedings between the Bank and the Borrower(s)/Guarantor(s). In the absence of properly executed documents, it may be very difficult for the Bank to succeed in any suit filed in a Court of Law for enforc- ing its rights under the documents. The legal protection and judicial adjudication always re- quires and depends upon valid documents. Documentation will succeed in fulfilling its pur- pose only when the following requirements are met

    (1)

    The owing of the debt to the Bank by the Borrower is established by documents

    (2)

    The charge created on the Borrower’s

    assets as security

    for

    the debt is preserved,

    protected, perfected and maintained in accordance with the law and

    (3)

    The Bank’s right to enforce the security for recovery of the debt through Court of Law

    is not barred

    by expiry of limitation under

    the Law of Limitation.

    Some Impor tant Documents

    While granting loans/advances to a borrower, the bank obtains several documents. Nature of some of the important documents as well as the objects for obtaining such documents are enumerated below in short:

    • 1. Demand Promissory Note (A1 and A2) A DP Note (taken by Banker) is an instrument in writing, executed by the borrower, in favour of the Bank, containing an unconditional undertaking to pay the amount he borrowed from the

    Bank, as

    and when the Bank demands it, along with interest at

    specified rate. A DP Note is always stamped with Revenue Stamp and the same should be cancelled by writing of the name or initials of the executant on or across the stamp with the date of his so writing.

    • 2. Letter of Continuity (A-3) In case of cash credit/over draft advances, this document is taken along with DP Note. The object for taking this document is to keep alive the DP Note, inspite of the fact that the balance in the cash credit/over draft account fluctuates and also goes into credit at times.

    • 3. Letter of Lien (A-4) This document is taken while granting advances against shares, National Savings

    3

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-1

    Certificate, Post Office Time Deposit, Govt. Promissory Notes, Debentures, Unit Trust

    Certificates

    and

    the

    like. It

    is

    to

    be

    stamped as an agreement.

    • 4. Partnership Letter (A-5) Partnership Letter is taken in case of advances to Partnership Firms who do not have Partnership Deeds. Where there is no written Partnership, it is difficult to prove the existence of a Partnership Firm when occasion demands. A-5 is a declaration from all partners regarding the existence of the Partnership Firm. This also specifies the Joint & Several character of liability of the partner as also their power to bind other partners.

    • 5. Temporary Mandate Form (A-6) When the borrower authorises another person to operate cash credit/ over draft account for a temporary period, this document is executed by him. This also contains the specimen signature of the person so authorised. This document should be stamped as an agreement.

    • 6. HUF Letter (A-7) HUF letter is taken when the bank grants loan and advances to Hindu Undivided Family. This document puts on record the name of the Karta and other adult Co-parceners. This also specifies their liability as also their power to bind all members. For all practical purposes this document serves the purpose of a resolution.

    • 7. Agreement of Pledge (A-8) This document is taken while granting loan and advances against security of pledge of goods. It is stamped as an agreement. The securities in this document should be described only in general term without giving any details of their actual quantity, value, mode of packing etc. When an account is secured by pledge of movables, the period of limitation for recovery of monies due under such an account would be 3 years from the close of the year in which the last item of debit or credit is admitted or proof in case of cash credit account and in case of demand loan account, the period of limitation would be 3 years from the date when the loan is made. It may, however, be noted that as pledgee the bank has a right to sell the pledged goods at any time in its discretion on reasonable notice to the Borrower and appropriate sale proceeds towards

    its dues without intervention of court. There is

    no

    period

    of

    limitation for such sale.

    But if there

    is

    a

    shortfall in the account after such

    sale,

    the Bank will

    not

    be able to

    recover it from the Borrower personally unless the suit to recover such shortfall is filed in court within the prescribed period of limitation as stated above. Agreements of pledge

    4

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-1

    are required to be acknowledged once in every 3 years.

    The State Government has remitted the stamp duty payable on a document of pledge. But as a document of pledge contains other agreements, it is stamped with duty as an agreement.

    • 8. Form of Supplemental Agreement to Pledge of Goods for Increase in Limit/Facility for adult property as security (A-8A) This document is taken when the Bank enhances the existing limit/facility granted to the Borrower for additional property pledged as security.

    • 9. Form of Supplemental Agreement to Pledge of Goods for Increase in Limit/Facility without Additional Property as Security (A-8B). This document is taken when the Bank enhances the existing limit/facility granted to the Borrower without additional property pledged as security.

    • 10. Agreement of Hypothecation (A-9) This document is taken while granting loans and advances against security of hypothecation of goods. It is stamped as an agreement. It

    may

    be pertinent to point

    out here that stamp

    law as applicable to certain states

    also provides for payment of ad valorem stamp duty on the document of hypothecation. Hence, in the states, which provide for payment of ad valorem stamp duty on the deed of hypothecation, in such states, the deed of hypothecation, if executed and/or acted

    upon there, would attract ad valorem stamp duty as prescribed for deed of hypothecation.

    • 11. Hypothecation & Book Debts to secure Demand Cash-credit (A-9B) This document is taken when the

    Bank makes an

    advance and/or agrees to grant

    accommodation to the Borrowers to Bank.

    open

    a Cash

    Credit account in

    the

    books of the

    • 12. Composite Agreement for Working Capital/Term Loan Facilities and Hypothecation (A-9C) This document is obtained when the Bank grants a Composite Loan to the Borrower under the scheme of Prime Minister Rozgar Yojana (PMRY).

    5

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-1

    • 13. Agreement for extension of Charge by way of Hypothecation over Current Assets to secure Non-Fund Based Facilities (A-9D) This document is obtained when accommodation by way of cash credit facility and other additional facilities are granted to the Borrower and the Borrower agrees that the first charge created by hypothecation will also extend over the additional facilities.

    • 14. Letter of Acknowledgement - cum - Balance Confirmation (A-12) The purpose of taking this document is two – fold:

      • a. It serves as an acknowledgement of debt.

    b.

    It

    links the old documents with the new

    ones.

    There is a difference between the purpose for renewal of limit and the purpose for which the documents get renewed. Renewal of limit may be done within one year

    according

    to

    the

    practice of

    the

    Bank. It

    gives an opportunity to the Bank

    to review

    the account to verify whether the party is conducting the account satisfactorily. If the Bank is satisfied as to the conduct of the account it may renew the limit or otherwise it may recall the advance. The purpose behind the renewal of documents is to save the advance from being time-barred. As such the documents must be renewed within

    a period of 3 years. But it is not necessary to renew the documents at the time of renewal of limit unless there has been a change in the limit or on terms and conditions

    of

    the

    limit. This

    is

    obtained at the

    time of renewal of the documents. The document

    is to be stamped as an acknowledgement and the borrower has to sign on the Revenue

    Stamp of requisite value.

    • 15. Agreement of Bills Purchase (A-20) This document is taken by granting of Bill Purchase facility/advance against Bills in course of collection. A-20 is an agreement regarding bills purchased or advances in course of collection of bills. It simply lays down the terms and conditions on which the Bills

    Purchased

    facility

    are granted

    to

    the

    party. In

    case

    of Bills purchased, the Bills

    are endorsed in favour of Bank and the Bank becomes a holder-in–due-course and

    has a right to sue the party concerned on the instrument itself. The Bank has recourse against the party for whom the bills have been purchased and normally in case of dishonour the party is asked to reimburse the amount and on failure to do so, his account is debited. If the full amount is recovered by debiting the account, the matter

    ends

    there. But

    if

    it

    is

    not,

    an

    overdraft

    would

    be

    created

    and

    this

    will have

    to

    be

    recovered within

    a

    period

    of

    3

    years otherwise it will

    become time- barred. Even

    6

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-1

    otherwise the suit on the instrument must be filed within a period of 3 years. In order

    to save

    limitation

    confirmation of

    balance

    is

    to

    be obtained. A-20 does not require

    renewal. It

    is

    to

    be

    stamped as an

    agreement.

     
    • 16. Letter of Guarantee (A-21/A-21A) This document is obtained from the guarantor whenever loans and advances are sanctioned on the guarantee of a third person. A-21 is obtained from the guarantor when the borrower is either a company or a firm. A-21A is obtained from the guarantor when the borrower is an individual. Strictly in law, it should be stamped as an agreement plus indemnity. But in practice, it is stamped as an indemnity only.

    • 17. Consumer Loan Agreement (A-27) This document is taken while

    granting consumer loan. The borrower as well as the

    guarantor sign this document on all pages. This guarantee – cum- agreement.

    document is

    to

    be stamped as

    a

    • 18. Agreement for Transport Loan (A-36) This document is taken while granting Transport Loan. This document is signed by the borrower

    as

    well as the guarantor

    on

    all pages.

    • 19. Letter of Lien on Fixed Deposit Receipt (A-38) This document is taken while granting advances against the security of Fixed Deposit Receipt. When the advance is granted to the Depositor this document need not be got stamped. In case of advance to a person other than the depositor, it should be stamped as an agreement.

    • 20. Agreement for advances against Fixed Deposit Receipt not belonging to the Borrower (A-39) This document is taken from a borrower who borrows against the security of a Fixed Deposit Receipt belonging to other person. It is to be stamped as an agreement.

    • 21. Power of Attorney relative to Supply Bills on Government (A-40) This document is obtained from the borrowers while granting advances against government supply bills. This is an irrevocable Power of Attorney granted by the borrower in favour of the Bank empowering the latter to sign, present and submit supply bills on behalf of the borrower to the Government Departments concerned and also to obtain payment thereof. This document is to be stamped as a Power of Attorney.

    7

    UCO BANK

    • 22. Letter of Waiver (A-47)

    DOCUMENTATION MANUAL

    CHAPTER-1

    This document is obtained from the borrower whenever the advances are granted against DP Notes. As per section 64 of Negotiable Instruments Act, 1881, the Promissory Note must be presented for payment to the maker. In Bank’s case, the maker is always the borrower. If it is not presented to the borrower he can’t be held liable for the amount. As it is very difficult for the Bank to present the DP Notes to the borrower for payment of their dues, the Bank takes such a letter from the borrower. By this letter the borrower waives the condition of presentation of the DP Note to him and he undertakes to make payment of the amount due under the DP Note without the same being presented to him.

    • 23. Agreement for Education Loan (A-49) This document is taken while granting loan under Bank’s Education Loan Scheme. Both the borrower and guarantor sign this document. This is to be stamped as an agreement- cum-guarantee.

    • 24. Agreement-cum-Declaration for loan against LIC Policy (A-58) This document is taken while granting loan against the security of LIC Policy. Strictly speaking this document need not be stamped but it is preferable to get it stamped as an agreement. No charge on security is created by this document. For that the Policy is

    to be assigned

    by the borrower in

    favour of the Bank.

    • 25. Counter Guarantee (A-88B) This document is obtained from the borrower whenever Bank executes a guarantee to the third party at the request and for the sole benefit of the borrower. When the Bank executes guarantee to the third party it undertakes full obligation under the guarantee. In case of borrower’s default in fulfilling his obligation to the third party, guarantee may be invoked against the Bank. This document is a counter-guarantee given by the borrower to the Bank. On the strength of this document, the Bank can recover from the borrower all losses, damages, costs, charges and expenses incurred/ sustained by the Bank in connection with the fulfilment of the terms of the guarantee executed by it. Although this document is known as a counter-guarantee, yet it is more in the nature of a counter-indemnity. Hence, it is better to get it stamped as an indemnity.

    • 26. Format of Permanent/Omnibus Counter Guarantee By this document, the Borrower counter guarantees the entire guarantee limit sanctioned

    8

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-1

    by the Bank and there is no necessity of obtaining Counter Guarantee (A-88B) on each and every occasion when Bank issues guarantees on behalf of the Borrower.

    • 27. Deed of Simple Mortgage (A-103/A-103A) A-103 is taken when the Bank decides to obtain collateral security of simple mortgage of land and building while granting agricultural advances. A-103A is

    also

    taken

    as

    above,

    but

    it

    to farmers for cultivation of crops.

    is

    taken only while granting

    Cash Credit facility

    These documents have got to be witnessed by at least two witnesses before registration. These documents have got to be registered with the Registrar of Assurance of the area where the property is situated. These documents attract advalorem stamp duty depending on the amount secured.

    • 28. Agreement of Hypothecation of Pump Set (A-104) This document is obtained from the borrower while granting loan for the purchase of a Pump Set. The pump set stands hypothecated to the Bank on the strength of this document. This is to be stamped as an agreement.

    • 29. Hypothecation of Standing Crops (A-105) This document is taken from the borrower

    at the time of agricultural advances (e.g.

    Crop Loan, Pump Set Loan, Tractor Loan, Dug-well Loan, Land Development Loan, Other Agricultural Implements Loan etc.) when it is decided to create hypothecation charge on standing crops as an additional security. This document is to be stamped as an agreement.

    • 30. Agreement of Hypothecation of Tractor (A-108) This document is obtained from the borrower while granting loan for the purchase of a Tractor. The Tractor stands hypothecated to the bank on the strength of this document. This is

    to be stamped as an agreement.

    • 31. Agreement relating to Term Loan (A-109) The document is taken from the borrower while granting Term Loans. A copy of the Borrower’s Proposal should be enclosed to this document. It should be stamped as an agreement.

    • 32. Acknowledgment of Debt & Security (A-12A and S-14) This document is obtained every half–year showing the balance and details of securities

    9

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-1

    as of 30 th June/31 st December. This is a document of Balance-cum-Security Confirmation. It also serves as an acknowledgement of debt. This document is got to be signed by both the borrower and the guarantor. If it is signed by the guarantor, it will be deemed as an acknowledgment of liability by the guarantor under Section 18 of the Indian Limitation Act, 1963 and a fresh period of limitation against him commences from the date he acknowledged. Where, before the expiration of the prescribed period of limitation, an acknowledgement of liability in respect of the debt has been made in writing signed by the party from whom the debt is due, a fresh period of limitation starts from the time when the acknowledgement is so signed. This document should be stamped as an acknowledgement, using a Revenue Stamp.

    33.

    Application for Letter of Credit (FR-2)

    This document is obtained from the

    borrower while

    opening

    Letter

    of Credit

    on

    his

    behalf. It should be stamped as an agreement. This document is taken for foreign as

    well

    as

    inland Letter of Credit. More

    than

    one

    Letter of Credit cannot be opened on

    the

    strength of one FR-2 form.

     

    1 0

    UCO BANK

    CHAPTER – 2

    DOCUMENTATION MANUAL

    CHAPTER-1

    ADVANCE AGAINST GOODS AND WAREHOUSE RECEIPTS

    General :

    Advances against goods may be made by way of ‘Pledge’ or ‘Hypothecation’.

    When

    Charge is

    by way

    of Pledge, Letter of Pledge (Form A8) should be obtained.

    When Charge

    is

    by

    way of Hypothecation, Letter of Hypothecation (Form A9) should be

    obtained. Form of agreement Form

    A9D

    should

    be obtained for

    extension of charge of

    hypothecation over current assets of the borrowing company for non-fund based facilities.

    1 1

    UCO BANK

    CHAPTER – 3

    DOCUMENTATION MANUAL

    CHAPTER-3

     

    ADVANCE

    AGAINST

    IMMOVABLE

    PROPERTIES

    General

    Annexure I

    :

    Draft of Letter of Undertaking to be obtained from the vances against Immovable property.

    applicant for ad-

    Annexure II

    :

    Draft of Letter authorising a person to deposit Title Deeds of Property for creating Equitable Mortgage.

    Annexure III

    :

    Draft of entry to be made in Equitable Mortgage Register in respect of property standing in the name of one or more individuals.

    Annexure IV

    :

    Draft

    of

    entry to

    be made in Equitable

    Mortgage Register in respect of

     

    property standing in the name of partnership firm.

     

    Annexure V

    :

    Draft

    of

    Entry

    to

    be made

    in Equitable mortgage Register in respect

    of

     

    property standing in the name of Limited companies.

    Annexure VI

    :

    Dr aft

    of

    Letter of

    Deposit of Title Deeds to be obtained from the

     

    mortgagor(s).

    Annexure VII

    :

    Draft of Letter to be obtained from mortgagor(s) for covering increase in limits.

    Annexure VIII

    :

    Draft of entry to be made in Equitable Mortgage Register owing to increase in limits.

    Annexure IX

    :

    Draft of letter to be obtained from mortgagor(s) for deposit of additional Title Deeds with or without increase in limits.

    1 2

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-3

    ANNEXURE-I

    DRAFT OF LETTER OF UNDERTAKING TO BE OBTAINED FROM THE APPLICANT FOR ADVANCE AGAINST IMMOVABLE PROPERTY

    The Manager, UCO Bank ............................................

    Dear Sir,

    Date ..........................

    Re : Request for a loan/cash credit facility against security of immovable property

    I/We have requested you to grant me/us a cash credit/loan facility inter alia, against the security of my/our immovable properties situated at ........................................

    In

    the

    event of your agreeing to sanction the

    credit facility, I/We would be prepared, if

    so demanded by you, to execute and register in your favour a deed of mortgage in such form and with such powers of sale etc. as you may require and I/we shall pay and bear all expenses relating to preparation, execution, stamping and registration of the deed of mortgage and all other documents required by you so as to complete the security in your favour as aforesaid including all out-of-pocket expesnes, valuer’s/surveyor’s fees etc.

    I/We have handed over to you the undermentioned title deeds relating to my/our above property offered to you as security for the above credit facility for getting the same examined by your lawyer in order to verify that my/our title to the said property is clear and marketable and that the same is free from all encumbrances whatsoever and is not subject to any litigation or attachment.

    I agree and undertake to pay to you on demand all your costs, charges and expenses including your lawyer’s fees in connection with the examination and verification of my/our title to the property as aforesaid irrespective of whether the credit facility is sanctioned to me/us or not. In case the credit facility requested for is not sanctioned to me/us for any reason whatsoever, the title deeds will be returned to me/us only against my/our payment to you all your costs, charges and expenses as aforesaid.

    Details of Title Deeds :

    1 3

    Yours faithfully

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-3

    ANNEXURE-II

    DRAFT OF LETTER AUTHORISING A PERSON TO DEPOSIT TITLE DEEDS OF PROPERTY FOR CREATING EQUITABLE MORTGAGE

    The Manager, UCO Bank, .................................................

    Dear Sir,

    Date ...........................

    I/We have to advise that I/we have authorised Shri ............................................................... to deposit the title deeds mentioned below relating to my/our property being premises

     

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

    /

    holding

    situat ed

    at

    on my/our behalf with you with an intent to create

    an equitable mortgage thereon in you favour over the said property as security for due repayment of advances made in and/or to be made by you to me/us/Shri/

    M/s. ..................................................................................

    in loan/cash credit/overdraft or any other

    account upto the limit of

    Rs. ................................

    with all interest, commission, discount, cost,

    charges and expenses thereon as agreed upon.

    Yours faithfully

    Details of the Title

    Deeds :

    (Signature(s) of the person(s) in whose name property stands)

    Note :

    (i)

    Letter of Authority should be signed by all

    the joint owners.

    (ii)

    In case property stands in the name of partnership firm, all the partners should sign the Letter of Authority.

    1 4

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-3

    ANNEXURE-III

    DRAFT OF ENTRY TO BE MADE IN EQUITABLE MORTGAGE REGISTER IN RESPECT OF PROPERTY STANDING IN THE NAME OF ONE OR MORE INDIVIDUALS

    Shri

    called at this branch

    on

    opposite page hereto. While depositing the same Shri .............................................................. stated that the title deeds are being deposited with the bank with an intent to create an equitable mortgage in favour of the bank over the properties comprised in the said title deeds consisting of land, buildings, other structures and also on fixed plant and machinery, fixtures and fittings now erected or installed or hereafter to be erected or installed or brought thereon as continuing security for due repayment to the bank of all advances made and/or to be

    made to

    by the bank by way of loan/cash credit/overdraft etc. or

    ................................... otherwise or for all other indebtedness and liabilities whatsoever and all costs and charges

    remaining outstanding at any time and for any balance which may be due to the bank by

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

    either as principal debtor or as a s urety

    now or hereafter remaining unpaid in his/their loan/cash credit/current/overdraft account or

    any other account(s) upto the limit of

    Rs. .........................

    with all interest, commission,

    discount, cost, charges and expenses thereon as agreed upon.

    Asstt. Manager

    Manager

    Witness :

    Date .................................

    Note

    :

    (i) Please furnish complete details of the title deeds on the opposite page.

    (ii)

    If

    plant & machinery is not mortgaged, this

    may be deleted.

    1 5

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-3

    ANNEXURE-IV

    DRAFT OF ENTRY TO BE MADE IN EQUITABLE MORTGAGE REGISTER IN RESPECT OF PROPERTY STANDING IN THE NAME OF PARTNERSHIP FIRM

    Shri

    one of the par tners of (hereinafter referred to as the firm)

    and deposited the title deeds

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

    M/s. .......................................................................................... called at this branch on

    ...................................................... mentioned in the opposite page hereto. While depositing the same

    Mr. ........................................................................

    stated that the title deeds are being deposited

    on behalf of the firm and all its partners with the bank with an intent to create an equitable

    mortgage in favour of the bank over the properties comprised in the said title deeds consisting of land, buildings, other structures and also on fixed plant and machnery, fixtures and fittings now erected or installed or hereafter to be erected or installed or brought thereon as continuing security for due repayment to the bank by way of loan/cash credit/overdraft etc. or otherwise or for all other indebtedness and liabilities whatsoever and all costs and charges remaining outstanding at any time and for any balance which may be due to the bank

    by

    either as principal debtor or as a surety now or hereafter

    remaining unpaid in their loan/cash credit/current/overdraft account or any other account(s)

    upto the limit of

    with all interest, commission, discount, cost, charges

    and expenses thereon as agreed upon.

    Asstt. Manager

    Manager

    Witness :

    Date ....................................

    Note

    :

    (i) Please furnish complete details of the title deeds on the opposite page.

    (ii)

    If

    plant & machinery is not mortgaged, this

    may be deleted.

    1 6

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-3

    ANNEXURE-V

    DRAFT OF ENTRY TO BE MADE IN EQUITABLE MORTGAGE REGISTER IN RESPECT OF PROPERTY STANDING IN THE NAME OF LIMITED COMPANIES

    Shri two of the Directors/the Secretary of the

    and Shri

    one/

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

    ...................................................... Co. Ltd.

    ........................................................................ (hereinafter referred to as ‘‘the Company’’) pursuant to the resolution passed by the Board

    of Directors of the Company on .................................................................................................

    called at this branch on

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

    and

    deposited the title deeds mentioned in the opposite page hereto. While depositing the same

    Mr. ..............................................................

    and

    Mr.

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

    stated that the title deeds are being deposited on behalf of the Company with the bank with an intent to create an equitable mortgage in favour of the bank over the properties comprised in the said title deeds consisting of land, buildings, other structures and also on fixed plant and machinery, fixtures and fittings now erected or installed or hereafter to be erected or installed or brought thereon as continuing security for due repayment to the bank of all

    advances made and/or to be made to

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

    by the bank by way

    of loan/cash credit/overdraft etc. or otherwise or for all other indebtedness and liabilities whatsoever and all costs and charges remaining outstanding at any time and for any balance

    which may be due to the bank by

    either as

    ........................................................................ principal debtor or as a surety now or hereafter remaining unpaid in their loan/cash credit/

    current/overdtaft account or any other account(s) upto the limit of ................................................. with all interest, commission, discount, cost, charges and expenses thereon as agreed upon.

    Asstt. Manager

    Manager

    Witness :

    Date ....................................

    Note

    : (i)

    Please furnish complete details of the title deeds on the opposite page.

    (ii)

    If plant

    & machinery is not mortgaged, this may be deleted.

    1 7

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-3

    ANNEXURE-VI

    DRAFT OF LETTER OR DEPOSIT OF TITLE DEEDS TO BE OBTAINED FROM THE MORTGAGOR(S)

    The Manager, UCO Bank, ......................................................

    Dear Sir,

    Date ...........................

    This is to confirm that I/we deposited with you on .................................................................... the title deeds mentioned below relating to my/our property being premises

    at

    /holding

    sit uated

    ...................................................... with an intent to create an equitable mortgage over the

    said property in your favour as security for the due repayment of all advances to the extent

    of

    made and/or to be made by you to me/us/Shri/

    M/s. ..........................................................................................

    in the cash credit/overdraft/loa n

    account or any other account and for all my/our/their indebtedness and liabilities whatsoever

    to you together with interest, costs, charges and expenses thereon.

    I/We

    hereby agree to execute at

    my/our own costs

    in favour

    of

    the bank

    whenever

    requested by the bank to do so, a registered mortgage over the said property in such form and with such powers of sale etc., as the bank may require for securing the above accounts.

    Yours faithfully,

    Details

    of

    the

    title deeds :

     

    Note

    : (i)

    In

    case

    of joint owners, it should

    be

    signed

    by

    all

    of them.

    (ii)

    In

    case of Partnership Firm/Hindu Undivided Family it should be signed by

    all

     

    the Partners/Karta and Co-parceners.

     
     

    (iii)

    In case

    of Limited Company, it should be signed by Direcotr(s) as authorised in

    the relative resolution.

    1 8

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-3

    ANNEXURE-VII

    DRAFT OF LETTER TO BE OBTAINED FROM MORTGAGOR(S) FOR COVERING INCREASE IN LIMITS

    The Manager, UCO Bank, ......................................................

    Dear Sir,

    Re : Cash Credit/Loan Account

    Date .............................

    I/We have deposited with you on

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

    the title deeds relating

    to my/our property situated at

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

    as security for the

    cash credit/loan facility to the extent of

    Rs. ....................................

    granted by you in favour

    of

    I/We thank you for sanctioning an increade

    of

    in the said cash credit/loan facility favouring

    As already agreed with you, the title deeds so deposited

    limit.

     

    Yours faithfully,

     

    Note

    :

    (i)

    In case

    of joint owners, it should

    be

    signed

    by

    all

    of them.

     

    (ii)

    In

    case

    of Partnership Firm/Hindu Undivided Family, it should be

    signed

    by

    all

     

    the Partners/Karta and Co-parceners.

     
     

    (iii)

    In case of Limited Company, it should the relative resolution.

    be signed by Director(s) as authorised in

    1 9

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-3

    ANNEXURE-VIII

    DRAFT OF ENTRY TO BE MADE IN EQUITABLE MORTGAGE REGISTER OWING TO INCREASE IN LIMITS

    Shri

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

    called at this branch this day

    and stated that the title deeds deposited

    as security for the cash credit/

    .......................................................................................... by him with the bank on

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

    loan facility to the extent of ........................................................

    Rs. ....................................

    granted by the bank to

    shall continue to be held by the bank as security for the

    increase cash credit/loan limit of

    Rs. .........................

    favouring ......................................................

    Asstt. Manager

    Witness :

    Date ....................................

    Manager

    2 0

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-3

    ANNEXURE-IX

    DRAFT OF LETTER TO BE OTBAINED FROM MORTGAGOR(S) FOR DEPOSIT OF ADDITIONAL TITLE DEEDS WITH OR WITHOUT INCREASE IN LIMITS

    Date ....................................

    The Manager, UCO Bank ......................................................

    Dear Sir,

    I/We/M/s. ..........................................................................................

    have been enjoying cash

    credit/overdraft/loan facility from you to the extent of

    against security

    of hypothecation/pledge of

    and collateral security of my/our

    immovable property being premises

    /holding

    no. ....................................

    situated at ........................................................................

    As you called upon us to furnish additional security for the above credit facility, I/we

    deposited with you on

    the title deeds relating to my/our

    immovable property being premises

    /holding

    situated at

    with an intent

    to create an equitable mortgage in your favour as security for due repayment of all advances

    made and/or to be made by you to

    and for all

    my/our/their indebtedness and liabilities whatsoever to you with interest, costs, charges and expenses thereon.

    At my/our request you have agreed to increase the abvoe limit in my/our/their cash

    credit/overdtaft/loan account with you to

    Rs. ....................................

    In consideration of your

    doing so I/we deposited with you the title deeds relating to my/our immovable property being

    premises

    holding

    .....

    situated at

    with an intent to create an equitable mortgage

    you to

    upto the said increased limit and for all

    my/our/their indebtedness and liabilities whatsoever to you along with interest, costs, charges

    and expenses thereon.

    2 1

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-3

    ANNEXURE-IX (Contd.)

    I/We

    certify that

    I/we

    have no

    further or other

    title deeds relating to the said property.

    The property is absolutely owned by me/us and is free from all encumbrances whatsoever

    and is not subject to any attachment or litigation.

    I/We hereby

    agree

    to

    execute at my/our own

    costs

    in favour

    of

    the

    bank

    whenever

    requested by the bank to do so, a registered mortgage over the said property in such form

    and with such powers of sale etc., as the bank may require for securing the above advances.

    Details

    of

    the

    title deeds :

    Strike out whichever is inapplicable.

    Yours faithfully

    2 2

    UCO BANK

    CHAPTER-4

    DOCUMENTATION MANUAL

    CHAPTER-4

    Advances against Fixed Deposit Receipts, Kuber Yojana Receipts, Money Multiplier (UCO Double/UCO Treble) Receipts, Lakhpati Deposit Receipts, Deposit Certificates, Flexible Fixed Deposit, Recurring Deposit (RD)/Money Back Recurring Deposits (MBRD), Life Insurance Policies, Units Issued by Unit Trust of India, Shares

    Advances against Fixed Deposit Receipts, Kuber Yojana Receipts, Money Multiplier (UCO Double/UCO Treble) Receipts, Lakhpati Deposit Receipts, Deposit Certificates.

    For advances against Fixed Dposit Receipts, Kuber Yojana Receipts, Money Multiplier (UCO Double/UCO Treble) Receipts, Lakhpati Deposit Receipts, Deposit Certificates, documents like A-1/A-2, A-47, A-3 (only for running facilities i.e., cash credit/overdraft), letter of lien (A-38 revised) duly signed by depositors should be obtained.

    Loan/Advances against Flexible-Fixed Deposit

    For Loan/Advances against Flexible-Fixed Deposit, separate money receipt on appropriate revenue stamp along with Pass Book is to be obtained along with loan documents A-1/A-2, A-47, A-38 (Revised), A-3 (for overdraft facility) at the time of granting loan/overdraft.

    Advances against Recurring Deposit (RD)/Money Back Recurring Deposits (MBRD)

    Documents like A-1/A-2, A-47, D-48 should be obtained for granting advances against Recurring Deposit (RD)/Money Back Recurring Deposits (MBRD).

    Advances against Life Insurance Policies

    Documents like A-1/A-2, A-47, A-3 (for overdraft accounts), Letter of Declaration-cum- Agreement (Form A-58) should be obtained for advances against Life Insurance Policies.

    Advances against Units Issued by Unit Trust of India

    Documents required to be obtained for advances against Units Issued by Unit Trust of India

    are

    Letter of Lien (A-4), Letter

    of Authority.

    Advances against Shares

    In case of advances against shares, besides other usual advance documents, Letter of Lien (A-4), Declaration-cum-Agreement (S-16), Dividend mandate (A-72), A-71 are required to be obtained. Lodgement of shares are required to be made by borrower by using Form A-17. For extension of time for the validity of transfer deed applications shall have to be made in Form 7C. For the Purpose of maintaing a proper record of the dividend warrants, branches should maintain Dividend Register (A-41) and Book Closing Register (Mis-32).

    2 3

    UCO BANK

    CHAPTER-5

    DOCUMENTATION MANUAL

    CHAPTER-5

    REGISTRATION OF CHARGES WITH THE REGISTRAR OF COMPANIES — MCA 21-e-GOVERNANCE PROGRAMME

    General

    The Ministry of Company Affairs has taken an e-Governance initiative called ‘‘MCA 21’’. With effect from September 16, 2006, creation of charge, modification of charge and satisfaction of charge require to be filed electronically (e-filing) under MCA-21 system only.

    Under MCA-21 system for creation or modification of charge, Bank

    No.

    8.

    is reqired to fill Form

    Once dues from a corporate borrower

    filed in e-Form

    17.

    are fully

    satisfied, satisfaction of charge has to be

    2 4

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-5

    ANNEXURE-I

    FORM 8

    [Pursuant to sections 125, 127, 132 and 135 and Pursuant to section 600 read with 125, 127, 132 and 135 of the Companies Act,

    1956]

    Particulars for creation or modification of charges (other than those related to debentures) including partculars of modification of charge by asset reconstruction companies in terms of Securitisation Act and Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002

    Note –

    All

    fields

    marked

    in

    are to be mandatorily filled.

    1.

    (a)

    This

    form

    is

    for

    m Creation

    of charge

    m Modification of charge

    (b)

    Whether charge is modified in favour of asset reconstruction company (ARC) or assignee

    m Yes

    m No

    (c)

    Whether charge holder is authorised to assign the charge as per the charge agreement

    m Yes

    m No

    (d)

    Charge identification (ID) number of the charge to be modified

    UCO BANK DOCUMENTATION MANUAL CHAPTER-5 ANNEXURE-I FORM 8 [Pursuant to sections 125, 127, 132 and 135
    • 2. Corporate identity number (CIN) or foreign company registration number of the company

    (a)

    UCO BANK DOCUMENTATION MANUAL CHAPTER-5 ANNEXURE-I FORM 8 [Pursuant to sections 125, 127, 132 and 135

    Pre-fill

    (b)

    Global location number (GLN) of company

    UCO BANK DOCUMENTATION MANUAL CHAPTER-5 ANNEXURE-I FORM 8 [Pursuant to sections 125, 127, 132 and 135

    (a)

    • 3. Name of the company

    UCO BANK DOCUMENTATION MANUAL CHAPTER-5 ANNEXURE-I FORM 8 [Pursuant to sections 125, 127, 132 and 135

    (b)

    Address of the registered office or of the principal place

    of

    business in India

    of the company

    (a)

    • 4. Type of charge

     

    A

    charge on :

    UCO BANK DOCUMENTATION MANUAL CHAPTER-5 ANNEXURE-I FORM 8 [Pursuant to sections 125, 127, 132 and 135
     

    p Uncalled share capital

    p Calls

    made but

    not paid

    p Immovable property

    p Ship

    p Any interest in immovable property

    p Goodwill

     

    p Book debts

    p Patent, license

    under a

    patent

    p Movable property (not being pledge)

    p Trademark

     

    p Floating chage

    p copyright

    or

    license under a copyright

    p Others

    (b)

    If others, specify

     

    (a)

    • 5. Whether consortium finance is involved

    m Yes

    m No

    (b)

    Whether joint charge involved

    m Yes

    m No

    2 5

    UCO BANK

    • 6. Number of charge holder(s)

    UCO BANK 6. Number of charge holder(s) 7. Particulars of the charge holder(s) DOCUMENTATION MANUAL CHAPTER-5
    • 7. Particulars of the charge holder(s)

    DOCUMENTATION MANUAL

    CHAPTER-5

    FORM 8 (Contd.)

    CIN

         

    Pre-fill

    Name

     

    Address

    Line

    I

     
     

    Line

    II

     

    City

     

    State

       

    ISO country code

       

    Pin code

       

    e-mail ID

     
    • 8. Nature or description of the instrument(s) creating or modifying the charge (copy to be attached)

    UCO BANK 6. Number of charge holder(s) 7. Particulars of the charge holder(s) DOCUMENTATION MANUAL CHAPTER-5
    • 9. Date of the instrument creating or modifying the charge

    UCO BANK 6. Number of charge holder(s) 7. Particulars of the charge holder(s) DOCUMENTATION MANUAL CHAPTER-5

    (DD/MM/YYYY)

    (a)

    • 10. Whether charge created or modified outside India

     

    Yes

    No

    (b)

    In

    case

    of charge

    created

    or

    modified

    outside India

    on

    the

    property

    situated

    outside

    India,

    the

    date

    of

    receipt of

    document in India.

     
       

    (DD/MM/YYYY)

     
    • 11. Amount secured by the charge

     
       

    (In

    case

    the

    amount is in foreign

    currency, rupee

    equivalent to be stated)

    (in

    Rs.)

    • 12. Brief particulars of the principal terms and conditions and extent and operation of the charge

     

    (a)

    Rate of interest

     
    UCO BANK 6. Number of charge holder(s) 7. Particulars of the charge holder(s) DOCUMENTATION MANUAL CHAPTER-5

    2 6

    UCO BANK

    • (b) Terms of repayment

    DOCUMENTATION MANUAL

    CHAPTER-5

    FORM 8 (Contd.)

    UCO BANK (b) Terms of repayment DOCUMENTATION MANUAL CHAPTER-5 FORM 8 (Contd.) (c) Margin (d) Extent
    • (c) Margin

    UCO BANK (b) Terms of repayment DOCUMENTATION MANUAL CHAPTER-5 FORM 8 (Contd.) (c) Margin (d) Extent
    • (d) Extent and operation of the charge

    UCO BANK (b) Terms of repayment DOCUMENTATION MANUAL CHAPTER-5 FORM 8 (Contd.) (c) Margin (d) Extent
    • (e) Others

    UCO BANK (b) Terms of repayment DOCUMENTATION MANUAL CHAPTER-5 FORM 8 (Contd.) (c) Margin (d) Extent

    13.

    In case of acquisition of property, subjected to charge, furnish the details relating to the existing charge on the property so acquired

    • (a) Date of instrument creating or evidencing the charge

    UCO BANK (b) Terms of repayment DOCUMENTATION MANUAL CHAPTER-5 FORM 8 (Contd.) (c) Margin (d) Extent

    (DD/MM/YYYY)

    2 7

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-5

    FORM 8 (Contd.)

    (b) Description of the instrument creating or evidencing the charge (c) Date of acquisition of property
    (b)
    Description of the instrument creating or evidencing the charge
    (c)
    Date of acquisition of property
    (DD/MM/YYYY)
    (d)
    Amount of the charge
    (in
    Rs.)
    (e)
    Particulars of the property charged
    14.
    Short particulars of the property charged (including location of the property)
    15.
    (a)
    Whether any of the property or interest therein
    under
    reference is not
    registered in the name of the company
    m Yes
    m No
    (b)
    If
    yes,
    in
    whose name it is registered
    Note
    :
    If more than one charge holder involved, details of extent of charge, particulars of property charged, amount
    secured to be provided in attachment.

    2 8

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-5

    FORM 8 (Contd.)

    16. Date of latest modification prior to the present modification (DD/MM/YYYY) 17. Particulars of the present
    16.
    Date of latest modification prior to the present modification
    (DD/MM/YYYY)
    17.
    Particulars of the present modification
    Attachments
    List of attachments
    1.
    Instrument of creation or modification of charge
    Attach
    2.
    Instrument evidencing creation or modification
    Attach
    of
    charge in
    case of acquisition of property
    which is already subject to charge
    3.
    Particulars of all joint charge holder
    Attach
    4.
    Optional attachment(s) — if any
    Attach
    Remove attachment
    Verification
    To
    the
    best
    of
    my
    knowledge and belief the information given
    in
    this
    form
    and
    complete. I have been authorised by the board of directors’ resolution dated«
    its attachments is correct and
    (DD/MM/YYYY)
    to
    sign and
    submit this form.

    To be digitally signed by

    Managing director or director or manager or secretary (in case of an Indian company) or an authorised representative (In case of a foreign company)

    Designation

       

    Director identification number of the director or membership number of the secretary

    Verification

     

    To

    the best

    of my/our knowledge and belief, the

    information given in

    this form and its attachments is correct and complete.

    I/we am/are duly authorised to sign this form.

    To be digitally signed by

    «Designation

     

    «Charge holder

     

    To be digitally signed by

     

    Designation

     

    ARC or assignee

       
     

    Modify

     

    Check Form

    Prescrutiny

    Submit

    For office

    use only :

     

    It is certified that the above document for charge creation or modification (other than those related to debentures) is hereby registered

    Digital signature of the authorising officer

    2 9

    Submit to BO

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-5

    ANNEXURE-2

    FORM 17

    [Pursuant to section 138 and pursuant to section 600 of the Companies Act, 1956]

    Particulars for satisfaction of charges

    Note – All fields marked in are to be mandatorily filled. 1. (a) «Corporate identity number
    Note –
    All
    fields
    marked
    in
    are to be mandatorily filled.
    1.
    (a)
    «Corporate identity number (CIN) or foreign company
    registration number of the company
    Pre-fill
    (b)
    Global location number (GLN) of company
    2.
    (a)
    Name of the company
    (b)
    Address of the
    registered office or of
    the principal place of
    business in India
    of the company
    3.
    Charge creation identification (ID) number
    Pre-fill
    (a)
    Particulars of the charge holder
    CIN
    Name
    Address
    (b)
    Particulars of creation of original charge and subsequent modifications.
    (i)
    Charge creation date
    (DD/MM/YYYY)
    (ii)
    Charge last modified date
    (DD/MM/YYYY)
    (iii)
    Final amount secured
    (in
    Rs.)
    4.
    Date
    of satisfaction of
    charge
    in
    full
    (DD/MM/YYYY)

    3 0

    UCO BANK

    Attachments

    DOCUMENTATION MANUAL

    CHAPTER-5

    FORM 17 (Contd.)

    1. Letter of the charge holder that the amount has been satisfied Attach 2. Optional attachment(s)
    1.
    Letter of the charge holder that the amount has been satisfied
    Attach
    2.
    Optional attachment(s) — if any
    Attach
    List of attachments
    Remove attachment
    Declaration
    To
    the
    best
    of
    our knowledge and belief, the
    information
    given
    in
    this
    form
    and
    complete. I have been authorised by the board of directors’ resolution dated
    its attachments is correct and
    (DD/MM/YYYY)
    to sign
    and submit this form
    To be digitally signed by
    Managing director or director or manager or secretary (in case of an Indian company)
    or an authorised representative (In case of a foriegn company)
    Declaration
    I
    am
    duly authorised to sign this form.
    To be digitally signed by
    Charge holder (financial institution or bank or debenture holder etc.)
    Certificate
    It
    is
    hereby certified that I
    have verified the above particulars from the books of account and records of
    M/s.
    and
    found
    them
    to
    be true and correct.
    Chartered Accountant or cost accountant or company secretary (in whole-time practice)
    Modify
    Check Form
    Prescrutiny
    Submit
    For office
    use only :
    It is certified that the above document for charge satisfaction is hereby registered
    Degital signature of the authorising officer
    Submit to BO

    3 1

    UCO BANK

    CHAPTER-6

    DOCUMENTATION MANUAL

    CHAPTER-6

    UCO RENT — SCHEME FOR FINANCING RENTAL RECEIVABLES

    General

    Under UCO Rent Scheme, the following documents are required to be obtained :

    • a) Agreement for assignment of rent receivables (as per format enclosed)

    • b) Term Loan Agreement — (A-109)

    • c) Letter of Guarantee — (A-107/A-21/A-21A)

    • d) Creation of Equitable Mortgage

    • e) Registration of charges on fixed assets with Registrar of Companies (wherever required)

    f)

    Original Lease Agreement with legal opinion.

    • g) Valuation Certificate/s of properties from approved valuer.

    3 2

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-6

    AGREEMENT FOR ASSIGNMENT OF RENT

    THIS AGREEMENT\ FOR ASSIGNMENT OF RENT is made this .....................................

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

    day of

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

    Two thousand BETWEEN

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

    a company incorporated

    under the Companies’Act, 1956 and having its Registered Office at ...........................................

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

    /

    son of .....................

    ,

    residing at ............................................. residing

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

    son of at ..................................................................

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

    son of

    ................................................. of “

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

    .............................................................. ..... and residing at ...........................................................

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

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

    ............................................................ carrying on business in co-partnership under the name and style

    ’’,

    hereinafter called ‘‘the Borrower” (which expression shall

    unless excluded by or repugnant to the context be deemed to mean and include its/ his/her/

    their respective heirs, executors, administrators, legal representatives, successors or successors in office and assigns) of the First Part, UCO BANK, a body corporate constituted under the banking Companies (Acquisition & Transfer to Undertaking) Act, 1970 as amended by Section 10 Sub-Section (i) of the Banking (Amendment) Act, 1985 and having its Head Office at No. 10, Biplabi Trailokya Maharaj Sarani, Kolkata-700 001 and a Branch/Regional Office amongst

    other places at

    hereinafter called “the Bank” (which

    ......................................................... expression shall, unless it be repugnant to the subject or context thereof, include its successors

    and assigns) of the Second Part AND

    , a Company

    incorporated under the Companies Act, 1956 and having its Registered Office at

     

    /

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

    son of

    residing at

    /

     

    son of ..................................................................

     

    and

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

    son of ..................................................................................

     

    carrying on

    context be deemed to mean and include its/his/her/their respective heirs, executors, administrators, legal representatives, successors or successors in office and assigns) of the Third Part.

    WHEREAS

    • 1. The Borrower is the owner / lessor of house/flat

    No. .............................

    situated at

    3 3

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-6

    Premises

    No. ............................................................................

    (here set out detailed description

    of the property) and is fully authorised and empowered to let out/grant lease of the said

    house/flat on such terms and conditions as the Borrower shall think fit and proper.

    • 2. The Borrower has let out/granted lease of the above house/flat to ............................

    Tenant herein, by way of monthly tenancy/lease upon the terms and

    ................................... conditions therein contained, a copy of which Tenancy/Lease Agreement is annexed hereto and

    ,

    marked with letter “A’.

    • 3. The Borrower has approached the bank to grant to it

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

    facilities

    to enable the Borrower to ..........................................

    4.

    At

    the

    request of the

    Borrower, the Bank has sanctioned to the Borrower loan of

    Rs. ................................................

    , inter alia, against the securities of assignment of rent

    receivables by the Borrower from its Tenant in favour of the Bank.

    • 5. To give effect to the aforesaid arrangement, the parties hereto have agreed to execute

    an agreement (being these presents) upon the terms and conditions hereinafter appearing.

    NOW THIS AGREEMENT WITNESSETH as follows :-

    • 1. The Bank has granted and/or agreed to grant and the Borrower has taken and/or agreed

    to take facilities/

    loan of

    Rs. ................................................

    from the Bank

    .............................. subject to payment of interest at the rate hereinafter mentioned and upon the terms and conditions hereinafter contained.

    • 2. The Borrower hereby agrees and covenants with the Bank to repay to the Bank loan

    amount of

    Rs. .......................................

    by

    monthly instalments of Rs. and

    ................................. each commencing from

    ............................................. ending on

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

    and such payment shall be made by assignment of rent

    .......................................... receivable by the Borrower from the Tenant.

    • 3. The Borrower hereby agrees and promises with the Bank to pay to the Bank interest @

    % per annum on the amount

    of loan outstanding for the time being on monthly/

    ............... quarterly/half-yearly rents and charged in accordance with the practice of the Bank.

    • 4. In fulfilment of the Borrower’s Convenient to repay the loan amount by instalment and to

    3 4

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-6

    pay interest at the rate hereinbefore mentioned the Borrower hereby agrees to assign in favour

    of the Bank monthly rent of

    Rs. .................................

    receivable by the Borrower from its Tenant

    in terms of the Tenancy Agreement entered into between the Borrower of the One part and the Tenant of the Other part and for the aforesaid purpose, the Borrower hereby unconditionally

    and irrevocably instructs and authorises the Tenant to pay to the Bank each and every month the rent payable by the Tenant to the Borrower in terms of the aforesaid Tenancy/Lease Agreement to liquidate the outstandings of the Borrower with the Bank under loan/facilities/

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

    loan of

    Rs. ..........................................

    enjoyed by the Borrower with the

    Bank.

    • 5. In consideration of the Borrower having instructed and authorised the Tenant and agreed

    to assign rent receivable by the Borrower from it’s Tenant in favour of the Bank the Tenant hereby agrees and undertakes with the Bank to deposit with the bank in the Account No.

    or such other account, as might be communicated by the Borrower or

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

    Branch

    ...................................... the Bank, of the Borrower maintained with the Bank’s

    at

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

    on or before 5th day of each and every month the monthly rent of Rs.

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

    payable by the Tenant to the Borrower subject to the deduction of tax

    at source and other amounts as mentioned in the aforesaid Tenancy/Lease Agreement dated entered into between the Borrower of the One Part and the Tenant of the

    ................................ Other Part.

    • 6. The Borrower hereby agrees and convenant with the Bank as follow :-

      • (a) That so long as the above loan is not fully repaid by the Borrower to the Bank, the

    Borrower shall not change its instruction or authorisation given to its Tenant to pay the rent to the Bank and terminate the tenancy/lease of the Tenant without the consent in writing of the Bank.

    • (b) Upon deposit of rent by the Tenant with the Bank in the manner stated above, the

    Borrower shall issue rent receipt in favour of the Tenant;

    • (c) The Borrower herepy irrevocably authorises and directs the Tenant to pay to the

    Bank the monthly rent receivable by the Borrower from the Tenant in terms of their Tenancy/

    Lease Agreement dated

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

    .

    • (d) The Borrower shall execute formal Deed of Assignment of Rent at its/his/her cost

    and expenses including stamp duty payable on such Deed of Assignment of Rent as and when

    3 5

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-6

    the Borrower called upon by the Bank to do so to protect the interest of the Bank and the Borrower undertakes to execute such Deed of Assignment and shall not raise any dispute or objection for such purpose.

    • (e) The Borrower hereby confirms and declares that if pursuant to Clause 7 (c) of this

    Agreement hereinafter mentioned, the Bank exercises its option to take possession of the Tenanted/Leased Premises from the Tenant and the Tenant delivers possession to the Bank, the Borrower shall not raise any dispute or objection to such delivery of possession and the Bank’s acceptance of possession from the Tenant shall be a good and valid discharge of the

    Tenant.

    • (f) The Borrower hereby empowers and authorises the Bank to accept possession of

    the above house/flat from the Tenant pursuant to the aforesaid sub-clause (e) and if necessary to issue Discharge Certificate in favour of the Tenant for and on behalf of the Borrower.

    • 7. The Tenant hereby agrees and covenants with the Borrower and the Bank as follows :-

      • (a) The Tenant hereby confirms the arrangement for Agreement of Assignment of Rent

    by the Borrower in favour of the Bank.

    • (b) That the Tenant shall deposit with the Bank each and every month, subject to

    deduction of tax at source and other moneys, rent payable by the Tenant to the Borrower in

    terms of the Tenancy/Lease Agreement dated ..........................................

    • (c) If the Tenant desires to terminate the tenancy/lease during the subsistence of the

    Loan agreement dated

    the Tenant shall do so upon prior notice being

    ....................................... served on the Bank and if the Bank desires, the Tenant shall deliver possession of the above

    ,

    Tenanted House/Flat to the Bank which the Borrower hereby confirms.

    • 8. The Borrower and the Tenant hereby agree and confirm that they shall not modify and of

    the terms, condition and covenants contained in their Tenancy/Leese Agreement without the consent in writing of the Bank.

    • 9. Any notice in writing to be served upon any of the parties hereto may be made or given

    by sending the same to such party at its respective address mentioned herein and every such notice shall be deemed to be received at the-time at which it is left or at the time which it would have been delivered by post or otherwise at the respective address of the parties.

    3 6

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-6

    IN WITNESS WHEREOF the parties hereto have executed these presents on the day, months and year first above written.

    SIGNED and DELIVERED by the above named Borrower in the presence of:

    SINGED and DELIVERED for and on

    behalf of Bank by

    Mrs.

    .......................................... its ........................................

    ............................................. in the presence of :

    SIGNED and DELIVERED by the above - named Tenant in the presence of :

    3 7

    UCO BANK

    CHAPTER-7

    DOCUMENTATION MANUAL

    CHAPTER-7

    ADVANCES ON CONSORTIUM BASIS : SINGLE WINDOW CONCEPT OF LENDING (SWCL) BY BANKS—DOCUMENTATION

    General

    With a view to enable the borrower financed by a consoritum of banks to execute only one set of documents which will be signed by the leader bank on its own behalf and on behalf of other members, a set of model documents has been evolved by the Legal Committee of the Indian Bank’s Association (IBA) for adoption by the bank. The procedure contemplated envisages execution of the following documents :

    i)

    Resolutions to be passed by the borrower’s Board of Directors.

     

    ii)

    Resolutions to

    be

    passed

    by

    the ‘B’ bank’s

    Board

    (‘B’ bank being

    the bank having

    second largest share).

     

    iii)

    Resolutions to

    be

    passed by the

    Boards

    of ‘C’ bank, ‘D’ bank

    and ‘E’ bank

    (who are

    the other members of consoritum).

     

    iv)

    Letter of authority to be given by ‘B’ bank, ‘C’ bank, ‘D’ bank and ‘E’ bank to ‘A’ bank (the leader bank).

    v)

    The letter of authority to be given by ‘C’ bank, ‘D’ bank and ‘E’ bank to ‘B’ bank.

    vi)

    Working capital consortium agreement.

    vii)

    Joint deed of hypothecation.

    viii)

    Inter

    se

    agreement to

    be

    entered

    into

    between ‘A’ bank, ‘B’ bank, ‘C’ bank, ‘D’ bank

    ix)

    and ‘E’ bank. Revival letter for purposes of limitation and

     

    x)

    Letter of undertaking from the borrower for creating a second mortgage on fixed assets.

    The prescribed documentation procedure may be adopted in case of advances on consortium basis. It is advisable that the documentation procedure to be adopted by the consortium banks should be deliberated in the consortium meeting and on the basis of the consensus arrived at individual banks would take necessary steps in this regard.

    The IBA formats (revised) of consortium documents under Single Window Concept of Lending are annexed hereto.

    3 8

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-7

    ANNEXURE-I

    BOARD RESOLUTIONS

    The Chairman informed the Board that to meet a part of the Working Capital requirements of the Company/of the Division of the Company situated at ...........................................................

    in the State of ............................................................

    the consortium of Bankers, namely, A

    , Bank, B Bank, C Bank, D Bank and E Bank with A Bank as the Lead Bank have sanctioned to the Company various limits as follows :

    A Bank

    B Bank

    C Bank

    D Bank

    E

    Bank

    Cash Credit

     

    Hypothecation of

     

    Stocks

    &

    Goods -

    Limit

    Hypothecation of Book Debts - Sub-limit

    Bills Purchased/ Discounting - Limit

    Cheque Purchase Limit - Sub-limit

    Import/Inland Letter of Credit

    Sight

    /

    DA upto

    180

    days

    -

    Limit

    Inland Revolving Letter of Credit Sight / DA upto 60 days - Sub-limit

    Pledge

    Guarantee

    Limit

    Drawings against Uncleared Effects

    Bills Acceptance Limit

    Total—

    (The above List is only illustrative and not exhaustive) on the terms and conditions set out

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    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-7

    Annexure-I (Contd.)

    in their respective sanction letters. A Bank, B Bank, C Bank, D Bank and E Bank are hereinafter collectively referred to as ‘‘the A Bank Consortium’’. It has been agreed by and between the A Bank Consortium and the Company that the security for the above said Working Capital Limits will be a first charge on the Current Assets of the Company (namely, Stocks of Raw Materials, Stocks-in-process, Semi-Finished and Finished Goods, Stores and Spares not relating to Plant and machinery (Consumable Stores & Spares), Bills Receivable, Book Debts and all other movables excluding such movables as may be permitted by the A Bank Consortium in their discretion from time to time, both present and future, wherever situate and a Second Charge, if so required by the A Bank Consortium, on the Company’s immovable and movable assets (other than the Current Assets and mentioned above) both present and future. the Chairman further informed the Board that such charge on the Current Assets will rank pari passu with the existing charges created and/or agreed to be created

    thereon in favour of

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

    *.

    * (Here give the names of the Existing Bankers of the Company/Company’s Division having

    a Charge on the Current Asets, which

    will

    have a pari passu ranking).

    The Chairman further informed the Board that a Working Capital Consortium Agreement has to be entered into between the Company and the A Bank Consortium.

    The Chairman requested the Board to pass the necessary Resolution for the said purpose.

    After some discussion the following Resolutions were passed :

    1)

    The Company do borrow and avail of the following facilities from the A Bank Consortium, namely :

    A Bank

    B Bank

    C Bank

    D Bank

    E Bank

    Cash Credit Hypothecation of Stocks & Goods — Limit

    Hypothecation of Book Debt – Sub-limit

    Bills Purchased/ Discounting Limit

    4 0

    UCO BANK

    Cheque Purchase Limit - Sub-limit

    Import / Inland Letter of Credit Sight / DA upto 180 Limit

    days

    Inland Revolving Letter of Credit Sight / DA upto Sub-limit

    60 days

    Guarantee

    Limit

    Drawings Against Uncleared Effects

    Bills Acceptance Limit

    A Bank

    DOCUMENTATION MANUAL

    B Bank

    C Bank

    CHAPTER-7

    Annexure-I (Contd.)

    D Bank

    E Bank

    Total —

    (the above List is only illustrative and not exhaustive) on the terms and conditions as set out in their respective sanction letters issued to the Company and that

    Shri

    ,

    Shri

    and

    Shri

    be and are hereby severally authorised to

    consultation with A Bank, as the Lead Bank, and agree to such amendments, modifications or revisions therein as are acceptable to and for and on behalf of the Company.

    2. The Company do approve the draft of the Working Capital Consortium Agreement with A Bank, B Bank, C Bank, D Bank and E Bank in respect of the said facilities sanctioned by them to the Company in a form acceptable to the A Bank Consortium and that

    Shri

    ,

    Shri

    and

    Shri

    be and are hereby severally authorised

    to settle and finalise the same for and on behalf of the Company and the Company

    do execute the Working Capital Consortium Agreement as so finalised and that the

    4 1

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-7

    Annexure-I (Contd.)

    Common Seal* of the Company be affixed to the stamped engrossment of such Working Capital Consortium Agreement as finally settled and to (five)** counterparts thereof in

    the presence of any one of Shri Shri ............................................................ Directors of the Company and Shri

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

    ,

    ,

    Shri ............................................................ being the

    ,

    ............................................................ secretary of the Company/the person authorised by the Board in that behalf, who do sign the same in token thereof.

    *

    To check with the Articles of Association of the Company and to frame it accordingly.

    **

    Number to be changed according to the number of Members in the Consortium.

     

    Shri

    • 3. ............................................................

     

    Shri

    and

     

    Shri

    ,

    be and are hereby severally authorised to

    accept such amendments, modifications or revisions in the said Working Capital Consortium Agreement after execution, during the period the said Working Capital Facilities from the A Bank Consortium or any one or more of them subsist.

    • 4. The Company do approve the Joint Deed of Hypothecation to be executed in favour of A Bank, B Bank, C Bank, D Bank and E Bank a Joint Deed of Hypothecation in respect of the Current Assets of the Company, namely Stocks of Raw Materials, Stocks in Process, Semi-Finished and Finished Goods, Spares and Stores not relating to the Plant and Machinery (Consumable Stores and Spares), Bills Receivable, Book Debts and all other movables (excluding such movables as may be permitted by the A Bank Consortium in their discretion from time to time), both present and future and that Shri ............................................................ Shri

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

    Shri ............................................................

    , be and are hereby severally authorised to settle

    ,

    and finalise the same for and on behalf of the Company and the Company do execute such Deed of Hypothecation as so finalised.

    • 5. The Company do file the requisite particulars of charge with the Registrar of Companies, ................................................ in respect of the said Joint Deed of Hypothecation after execution within the time prescribed by law.

    ,

    • 6. The Company do create, execute and furnish to the A Bank Consortium security by way of a Second Mortgage and Charge on the Fixed Assets and the Company as and by way of a Collateral Security, if so required by the A Bank Consortium and as and when stipulated by it, to secure the said Working Capital Facilities, after obtaining the

    4 2

    UCO BANK

    DOCUMENTATION MANUAL

    CHAPTER-7

    Annexure-I (Contd.)

    requisite approvals therefor from the Existing Term Lenders, in such form and manner as may be satisfactory to the A Bank Consortium such deeds, documents or writings,

    as in the opinion of the A Bank Consortium seems necessary, desirable or expedient and that such deeds, documents or writings as are not to be executed under the

    Common Seal* of the Company be executed by Shri

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

    ,

    Shri

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

    and Shri

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

    ......

    severally and in case the Common Seal of the Company has to be affixed to such of the deeds, documents or writings, the same be executed under the Common Seal of

    the Company in the presence of any one of Shri

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

    ,

    Shri

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

    and Shri

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

    ,

    Directors of the Company and Shri ............................................................

    being the

    , Secretary of the Company/the person authorised by the Board in that behalf, who do

    sign the same in token thereof.

    *

    To check with the Articles of Association of the Company and to frame it accordingly.

    • 7. The Company do file with the Registrar of Companies, , the requisite Particulars of Modification of Charge in respect of such Mortgage and Charge as and when created and executed within the time limit prescribed therefor.

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