Security bond by Surety

Updated at:March 2010
 
FREE EXCERPT

BY THIS BOND Mr.............. residing at..................................... hereinafter referred to as the 'Surety' acknowledges himself to be bound to Mr. B hereinafter referred to as the 'Creditor' in the sum of Rs....................... lent and advanced by the Creditor to Mr. C residing at... the Debtor, with interest thereon at the rate of Rs... percent per annum from the date hereof till payment.

WHEREAS the Creditor has lent and advanced to Mr. C the Debtor above-named a sum of Rs... repayable by him with interest thereon at the rate of Rs... per cent per annum.

AND WHEREAS the said amount has been advanced against the surety giving a guarantee for repayment of the said amount by the said Debtor and against the said guarantee being secured by a mortgage of the property of the Surety described in the Schedule hereunder written and which the Surety has at the request of the Debtor agreed to do.

NOW THIS DEED WITNESSETH that in pursuance of there request made by the Debtor to the Surety the Surety doth hereby guarantor and covenants with the Creditor that in default of payment of the amount of Rs... with interest as aforesaid by the Debtor to the Creditor within the lime stipulated by him in the separate writing executed by the Debtor-for evidencing the said Debt, in favour of the Creditor, the surety shall pay to the Creditor the said amount of Rs... or any part thereof remaining unpaid with Interest at the rate of... aforesaid till payment on demand made to the Creditor in writing

AND THIS DEED FURTHER WITNESSETH that pursuant to the said agreement, the Surety as a security for payment of the said amount by the Surety, both hereby grant and transfer by way of mortgage the said property described in the Schedule hereunder written TO HAVE and TO HOLD the same unto the Creditor subject to the...

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