Loan Agreement re. Production of a Picture
Re : .…………………………………
With reference to the sum of Rs. ………… advanced by you this day under a hundi drawn in your favour and also all costs of realization thereof as between attorney and client, I am writing to you this letter to record the transaction as follows:
1. I am the sole producer of the above picture now under production at ………. and the same is free from all encumbrances, lien and charges and that I alone am entitled to enter into this agreement.
2. I shall utilize the said sum of Rs. ………….. in the production, preparation and completion of the said picture only.
3. Subject to the provisions of cl. 7, I shall deliver to you all prints (negative and positive copies) duly passed by the Board of Censors at my own costs and expenses after completion of the film and you shall keep the same in Government-approved places at my costs. If you do otherwise and if any loss is occasioned to me you will be held liable.
4. The said picture together with all prints, both positive and negative, and all duplicate and other copies and all moneys due and payable by exhibitors and other persons on account of hire or otherwise in connection with the said film and all the deposits in bank, furniture, fittings, tools, implements, dress materials, playrights and other properties, assets and credit connected with the said picture shall stand charged in your favour as security for due repayment of the moneys due by me to you under these presents.
5. Subject to the provisions of cl. 7, I shall keep the said film with all accessories duly insured against loss or damage by fire, theft, etc., with some insurance company approved by you and hand over to you receipts obtained by me as and when payments are made for insurance premiums.
6. I shall not appoint any distributor or agent or otherwise part with the said picture except with your consent.
7. As soon as any distributor is appointed as per terms of cl. 6 or if you are asked to deliver the film directly to any show house you will have to release all prints (negative and positive copies) delivered to you in terms of cl. 3 provided always that all the conditions in this agreement will not be in force if you are paid the sum of Rs. …………… plus all interest due thereon. If no money is paid to you at the time of release I undertake and authorise you to accept all sale proceeds till your dues are fully paid off.
8. If in working out this agreement or in any matter relating to this transaction, any dispute arises, each party will be entitled, without interfering in any way with the production, publication, or exhibition of the film in question, to notify the other party for referring the dispute to arbitration in accordance with the Arbitration and Conciliation Act 1996.
9. If due to your laches in any way, I suffer loss, you will be held liable to compensate me.