Security Bond by a Surety

SECURITY BOND BY A SURETY

Through this Bond ___________[Name of person] residing at ____________[Postal Address ] hereinafter referred to as the ‘Surety’ acknowledges himself to be bound to_____________ [Name of creditor] hereinafter referred to as the ‘Creditor’ in the sum of Rs…………………. lent and advanced by the Creditor to_______________ [Name of Debtor] residing at ______________[Postal address] the Debtor, with interest thereon at the rate of ___[Rate of interest] percent per annum from the date hereof till payment.

Whereas the Creditor has lent and advanced to__________ [Name of Debtor] the Debtor above named a sum of Rs… …….repayable by him with interest thereon at the rate of___________ [Rate of interest] 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 Witnessed that in pursuance of their 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 time stipulated by him in the separate writing executed by the Debtor-for evidencing the said Debt, in favor 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 Witnessed that pursuant to the said agreement, the Surety as a security for payment of the said amount by the Surety, doth 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 covenant for redemption hereinafter contained And it is agreed and declared that in the event of the Surety being required to pay the said amount on default by the Debtor and on the surety so paying the said amount or any part thereof due and payable to the Creditor the Creditor shall release and recovery the said property to the Surety but at the costs of the Surety And it is further agreed that in the event of the Surety becoming liable and failing to pay the said amount or any part thereof as aforesaid, the Creditor will be entitled to sell the said property through a Court of law and to appropriate or apply the net sale proceeds thereof towards payment of the amount to the Creditor by the Surety and/ or the Debtor including costs of the suit and sale proceedings and to pay the balance if any to the Surety. And the Surety covenants with the Creditor that he has full right to mortgage the said property as aforesaid. And the condition of the Bond is that it will be void if the Debtor pays the said amount to the Creditor with interest as aforesaid, within the time stipulated otherwise, and failing which this Bond will remain in full force and effect.

The Schedule Above Referred To

Signed and delivered by the

Name of person

WITNESSES;

1

2.