LINE
OF CREDIT PROMISSORY NOTE
Rs_______________
Date:__________
FOR VALUE
RECEIVED, __________, ("Borrower")
promises to pay to the order of
___________________ ("Lender"), a
Company incorporated under the Companies Act,
1956, the principal sum of Rs_______, or so much
thereof as may be disbursed to, or for the
benefit of the Borrower by Lender in Lender's
sole and absolute discretion. It is the intent of
the Borrower and Lender hereunder to create a
line of credit agreement between Borrower and
Lender whereby Borrower may borrow up to
Rs________ from Lender; provided, however, that
Lender has no obligation to lend Borrower any
amounts hereunder and the decision to lend such
money lies in the sole and complete discretion of
the Lender.
INTEREST &
PRINCIPAL: The unpaid principal of this line of
credit shall bear simple interest at the rate of
_____ percent (__%) per annum. Interest shall be
calculated based on the principal balance as may
be adjusted from time to time to reflect
additional advances made hereunder. Interest on
the unpaid balance of this Note shall accrue
monthly but shall not be due and payable until
such time as when the principal balance of this
Note becomes due and payable. The principal
balance of this Note shall be due and payable on
_____________. There shall be no penalty for
early repayment of all or any part of the
principal.
SECURITY: This
Note shall be secured by a mortgage
("Mortgage") upon certain property
owned by the Borrower located in _________ (give
property detail).
DEFAULT: The
Borrower shall be in default of this Note on the
occurrence of any of the following events: (i)
the Borrower shall fail to meet its obligation to
make the required principal or interest payments
hereunder. (ii) the Borrower shall be dissolved
or liquidated; (iii) the Borrower shall make an
assignment for the benefit of creditors or shall
be unable to, or shall admit in writing their
inability to pay their debts as they become due;
(iv) the Borrower shall commence any case,
proceeding, or other action under any existing or
future law of any jurisdiction relating to
bankruptcy, insolvency, reorganization or relief
of debtors, or any such action shall be commenced
against the undersigned; (v) the Borrower shall
suffer a receiver to be appointed for it or for
any of its property or shall suffer a
garnishment, attachment, levy or execution.
REMEDIES: Upon
default of this Note, Lender may declare the
entire amount due and owing hereunder to be
immediately due and payable. Lender may also use
all remedies in law and in equity to enforce and
collect the amount owed under this Note.
Borrower hereby
waives demand, presentment, notice of dishonor,
diligence in collecting, grace and notice of
protest.
BORROWER:
___________
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