F30

Application Cum Pledge Letter for advance against Government Securities

(other than NSC/KVP), Shares of Limited Companies, L.I.C. Policies, etc.
Special
Adhesive
Stamp as on
Agreement
To
The Branch Manager
Pallavan Grama Bank
...................................................... Branch

Place ...........................
Date ............................

Dear Sir,
With reference to the loan of/overdraft for Rs................................. granted to me/us on my/our demand
pronote dated.............................. for the above amount and the collateral security of
1) Shares of ............................................................... of the paid up value of Rs. .....................
2)
GP Notes/Stock certificates of the market value of Rs. ....................
3)
Units of.................................................... with a market/net asset value of Rs. ......................
4)
L.I.C. policy(ies) of the surrender value of Rs. .......................duly assigned in your favour.
5. ................................................................................................................................................
(Any other security of similar nature which can be pledged with the bank.)
herein after called 'securities', which stand in my/our name and belong to me/us and which have been
pledged to you now and/or to be pledged to you from time to time and more fully described in the schedule
hereunder along with the transfer deed therefor in blank duly signed by me/us
1. I/We undertake to maintain always a margin of ................% on the market/net asset/surrender value of
the securities.
2. I/We hereby authorise you to complete the transfers at any time without reference to me/us for effectually
vesting in you the said shares and securities for the purpose of settling or transferring the same, and I/We
hereby irrevocably undertake to grant such further documents as may be found necessary or required by
you effectually vesting in you the said shares/securities.
1* I/we agree that the charges for completing the transfers and registering the shares/securities in your
name or in the name of any purchaser to whom you may sell the shares/securities shall be borne by me/us.
I/We also undertake not to do anything which will in any way impede or obstruct the transfer of the
shares/securities to you or by you or impair your security in any manner.
3. I/We hereby agree that the securities pledged or to be pledged from time to time to you as aforesaid
shall be continuing security for the overdraft/loan granted to me/us and that they shall stand security for all
my indebtedness of whatever nature, either individually or jointly at any office of the Bank.
4* I/We request you to kindly have my assignment of the above policies in your favour duly registered in the
books of the insurance company/respective insurance companies. I/We agree that my/our interest in the
policy/policies assigned to you covers all moneys payable under the policy/policies including the bonuses
and additions.
[* In the case of advance against securities other than shares/units of Mutual Funds, this line/para should be
deleted]
* I/We undertake to keep the policy/policies alive by paying the premium/premia on or before the due dates
and produce to you the premium receipts for being kept by you along with the policy/polices. In default of
payment by me/us of premium due on the above policy(ies) you shall have the right, but without being
obliged so to do, to pay the premium/premia yourself and debit it to my/our current/overdraft/ loan account
and recover it from me/us and I/we shall be bound to repay such amount along with interest thereon at the
rate mentioned in the pronote referred to above. If any policy/policies lapse(s) by non payment of premium
you shall in no way be liable or responsible for it.
[* In the case of advance against securities other than policies, this para should be deleted
5.1 I/We hereby authorise the Bank to charge and debit the said account with
(i)interest at a fixed rate of .....................% per annum with ........................................ rests
OR
(ii) a floating rate of interest

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*at the rate of .............. (spread) % per annum over the Bank's Benchmark Prime Lending
Rate (BPLR) *plus Tenor Premium of .. per cent per annum/
*at the rate of .............. (spread) % per annum below the Bank's Benchmark Prime Lending
Rate (BPLR) *plus Tenor Premium of .. per cent per annum/
*at the Bank's Benchmark Prime Lending Rate (BPLR) per annum plus Tenor Premium of
.. per cent per annum
*subject to a minimum of ...................% per annum with .................................................. rests, on daily
balance, such interest being added to the balance outstanding on the last working day of every
financial/calendar $......... and the said interest, if unpaid, will become part of the
amount advanced and bear interest at the same rate
(The current effective interest rate being ......................... % per annum which is arrived at on the lines based
on RBI guidelines on BPLR)
5.2 I/We agree that the Bank is entitled to charge a higher rate of interest than the rate stated
above as per Reserve Bank of India directives/Bank rules and agree(s) to pay interest at such
enhanced rates of interest. The Bank shall have the right to reset the BPLR/Spread/Tenor
Premium/Rests, any of them or all of them, either upwards or downwards.
5.3 I/We further agree that in the event of default in payment of interest/instalments on the
respective due dates or any irregularity in the account or non-complying with any of the terms and
conditions contained herein, the bank is entitled to charge overdue interest on the defaulted amount
at ....................% over and above the contractual/maximum interest rates or at such rates
with................................... rests as per the Reserve Bank of India / Bank's rules in force from time to time.
5.4 I/We shall be deemed to have received notice of change in the rate of interest whenever the
changes in the Bank's BPLR/Tenor Premium/Spread are displayed/notified by the Bank in the notice board
kept in the branch premises/published in newspaper/made through entry of interest charged in the pass
book/statement of accounts sent to me/us. Individual notice regarding the change of interest/charging of
overdue interest is expressly waived by me/us.
6. I/We agree to pay all expenses and charges such as service charges, processing charges, incidental
charges, godown charges, godown inspection charges, typing and postage expenses, legal notice
expenses, etc., which the bank may incur.
7. In the event of my/our failure to repay the amount on demand by you or to maintain at any time the
margin as agreed above, you shall have the right to sell, either by private sale or through brokers, or
surrender to insurance company(ies), at my/our risk and expense without reference to me/us all or any of
the securities lodged herein and any further security that maybe lodged by me/us from time to time, whether
in addition to or in substitution for the securities now lodged and appropriate the net sale proceeds, after
deducting all charges and commission incurred in effecting the sale, towards the loan/overdraft in my/our
account. If the sale proceeds are not sufficient to discharge in full the liability due by me/us on the
loan/overdraft account, I/We will, of course, be liable to make good the deficit. In the event of any surplus
remaining in your hands after the appropriation of the net sale proceeds to my/our loan/overdraft account
you may at your absolute discretion appropriate the same towards any other liability or liabilities which may
be owing to any office of the bank by me/us on any account whatsoever whether partially or fully covered by
other securities or not and whether singly or jointly with others and whether as principals or as guarantors or
surety. I/We further agree that you shall have the option to recover the money due by me/us on the
loan/overdraft account by a suit on the pronote executed by me/us or realisation of securities by sale or
surrender in any order you may think fit or by both means at the same time.
8. I/We further agree that the demand pronote for Rs. ...................... agreed to be executed by
me/us in Bank's favour for the amount of overdraft to be granted to the extent of Rs. ....................
which I/We may avail hereafter shall continue as security for the repayment of the ultimate balance which
may remain due on my overdraft/loan account and the pronote and the securities lodged shall continue to
be the security until the overdraft is adjusted by me/us by payment in full and not with standing that by
payments made in to the account of overdraft from time to time, the account may have been brought to
credit or the limit of overdraft stand reduced or the overdraft extinguished.
9. i.I/We hereby agree and consent to the bank for the disclosure of all or any such information and data
relating to me/us
ii. information or data relating to my/our obligations in any credit facility granted/to be granted, by the bank
and availed by me/us and
iii.default if any, committed by me/us in discharge of my/our obligations

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as Pallavan Grama Bank may deem appropriate and necessary, to disclose and furnish to Credit
Information Bureau (India) Ltd., and any other agency authorised by Reserve Bank of India in this behalf.
10. I/We further agree and consent that the
i. Credit Information Bureau (India) Ltd., and any other agency so authorised may use, process the said
information and data disclosed by the bank in the manner as deemed fit by them and
ii. Credit Information Bureau (India) Ltd., and any other agency so authorised may furnish for consideration
the processed information and data or products thereof prepared by them, to Banks /Financial Institutions
and other credit grantors or registered users, as may be specified by RBI in this behalf.
Yours faithfully,

Borrower(s)

Type

Particulars

* Market Value/Surrender value/Net asset value

Signature of Borrower(s)

Value*

Margin

Advance Value

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Note: Strikeout wherever applicable as the case may be