Agreement regarding Construction Loan with a Bank
| Updated at | March 2010 |
Date ..........… 2000
The Agent
Bank of .............
(Address) ………………………
Dear Sir
I agree to grant to the Bank of Maharashtra (hereinafter referred to as the bank) a lease of my building bearing No..... situated in the main bazar owned by me and already in use of the bank for its branch.
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I agree to carry out at my cost all the necessary additions and alterations to the premises by attaching further portion owned by me to the entire satisfaction of the bank in accordance with the attached plan. The following covered accommodation would be available to the bank after completion of the additions and alterations:
Ground Floor:
(a) Banking hall
(b) Agent’s room
(c) R.C.C. locker room (existing strong room)
(d) R.C.C. strong room (to be constructed)
(e) Passage
(Steel flexible gates would be provided in the entrance doors)
First Floor:
(a) Staff lunch room
(b) Stationery room
(c) Record room
(d) Guard room
(e) Toilet
(f) Covered verandah
(Skylight vents would be provided in the ceiling of banking hall for light and ventilation)
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I will commence the said work within 30 days and will carry out and complete the same within four months from the date hereof.
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The bank will grant me a construction loan of Rs. .......…… @ ........... p.a. against a registered mortgage of the property, which will be repaid within five years by adjustment of Rs. ......…… per month out of the monthly rent payable by the bank. The loan will be granted by the bank in the following four instalments dependant on the basis of progress in construction work, as under:
(a) 1st instalment of Rs. ...........: To be allowed after the mortgage is registered in favour of the bank and other prescribed documents / certificates produced to the branch and the construction work is taken up in hand.
(b) 2nd instalment of Rs. ........: To be allowed when the construction of R.C.C. strong room is completed.
(c) 3rd instalment of Rs. ........: To be allowed when the entire construction work of the ground floor is completed.
(d) 4th instalment of Rs. ........: To be allowed when the construction jobs relating to 1st floor are completed and the building handed over to the bank complete in all respects with water connection/ sanitary and electric fittings, etc., and the prescribed lease deed is executed by me.
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I shall arrange to get the building properly insured against fire and earthquake risk, and the insurance cover will be renewed every year till the entire loan is repaid in full. In...
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