LETTER OF LIEN AND SET OFF
(hereinafter to be referred to as the Bank)
In consideration of the Bank granting us sale and leaseback facility of Tk. ____________________ (Taka __________________) only (the “Facility”) under the Sale and Leaseback Agreement dated ______________, (the “Agreement”) we do hereby agree, declare and acknowledge that:
1. The deposits of Tk. _________________ (Taka _________________) only maintained in the Fixed Deposit Account No. _______________ dated _______________ (the “Fixed Deposit Account”) with the Bank in our name be held by the Bank under lien as security for the Facility given under the Agreement.
2. The deposits denominated in Bangladeshi Taka is to be placed with the Bank.
3. That in order to perfect the security we have discharged the Fixed Deposit Receipt (FDR) in favour of the Bank.
4. We hereby admit, acknowledge and declare that in the event of any default on our part to repay the Facility under the terms and conditions of the Agreement the Bank shall be entitled without any notice to us and at the absolute discretion of the Bank to encash the fixed deposit, apply the same towards partial or full adjustment of our liabilities.
5. We further admit to have unconditionally authorised the Bank to encash the FDR (to the extent of lien amount) in the event of any failure on our part to comply with any terms and conditions of the Agreement.
6. We also admit and acknowledge that the lien hereunder created on the Fixed Deposit Account No. _________________ shall be irrevocable and shall continue until all obligations under the Agreement have been fully discharged.
8. We hereby agree that the Bank may at any time or times hereinafter without notice to us set off, transfer or apply all or any of the monies from time to time standing to the credit of our aforesaid Fixed Deposit Account in or towards the discharge and satisfaction of all sums of money which now are or at any time or times hereinafter may become due or owing to the Bank by us under the Agreement.
9. We further agree that the right to set off the deposits is irrevocable and binding and during the continuance of the said liability we shall not countermand the authority given to the Bank hereunder.
10. We further hereby declare and acknowledge that we shall have no claim whatsoever to the amounts in the Fixed Deposit Account held by the Bank under lien and no drawings shall be permitted from Fixed Deposit Account until we have received from the Bank a notice in writing to the effect that the Bank no longer require the Fixed Deposit as security for the purpose herein specified.
11. We further hereby declare that the undertaking and authorization made under this deed shall be binding in the manner aforesaid on our successors-in-interest and assigns.
12. We declare that all necessary formalities including statutory and Governmental approvals have been adopted and/or complied with for execution of this instrument.
13. This Letter of Lien and set-off shall be governed and construed in accordance with the laws of Bangladesh.
IN WITNESS WHEREOF WE SIGN AND EXECUTE THIS LETTER OF LIEN AND SET OFF ON THIS THE ______ DAY OF _______________________, 200_.
For and on behalf of:
MAWLA LABELS LIMITED
In witness of:
For: “The Lawyers & Jurists”
M.L.Hotel Tower Ltd,208,Shahid Syed Nazrul Islam Sarani,
Bijoy Nagar, Dhaka-1000.