Letter of Indemnity

 

This Letter of Indemnity is executed on this the __________ day of __________ month of 2010 of Christian era.

This Letter of Indemnity is executed by Mr. Mohammad Shahidullah, proprietor of M/s. Chittagong Steel Complex, a proprietorship concern having office address at Sena Kalyan Bhabhan, Suite # 1110, 195, Motijheel C/A, Dhaka and business at 327/3, South Jattarabari, Demra, Dhaka, hereinafter called the ‘BORROWER’ (which expression shall unless excluded by or repugnant to the context mean and include his representatives, executors, administrators, successors-in-interest and assignees) of the one part.

In favour of Dhaka Bank Limited, a scheduled bank incorporated in Bangladesh under the Companies Act, 1994 and governed by the Bank Companies Act, 1991, is carrying out its banking business having its Head Office at 100, Motijheel C/A, Biman Bhaban 1st Floor­­ alongwith one of its branch offices namely “Bangshal Branch”, 88, Shaheed Syed Nazrul Islam Sharoni, Bangshal, Dhaka, hereinafter called the Bank, (which expression shall unless excluded by or repugnant to the context mean and include its representatives, executors, administrators, successors-in-interest and assignees) of the OTHER PART.

WHEREAS the Borrower being in need of financial assistance requested the Bank for sanctioning lease finance facility for procurement of 10 (ten) Units Brand New Ashok Leyland Trucks Chasis with Complete Covered Van vehicle to be used for business purpose;

AND WHEREAS at the request of the Borrower, the Bank has sanctioned Lease Finance Facility of Tk.1,50,00,000.00 (Taka one crore fifty lac) only (hereinafter referred to as the “Loan”) vide its Sanction Letter no. DBL/BSL/CR/2006/2703 dated 30.08.2006 (the ‘Sanction Letter’) on the terms and subject to the conditions as stipulated therein;

AND WHEREAS, the Bank shall be entitled at its discretion to hold a lien on the full amount of the security deposit and/or any part thereof and the Bank is entitled to adjust from the said amount and dues/expenses incurred or losses and damages suffered by the Borrower due to breach of the terms of the this Letter of Indemnity.

NOW THIS DEED WITNESSETH AS UNDER:

  1. That Borrower do hereby undertakes to indemnify and keep the Bank harmless from all the losses, damages, prosecution, expenses etc. which may be suffered, incurred and sustained by the Bank due to any breach of default by the Borrower of the terms of the this Agreement.
  1. That the Borrower undertakes to indemnify the all such losses and dues sustained by the Bank due to breach of Agreement resulting in either civil, sales tax, or any criminal liability imposed on Bank during the continuance of the Agreement or after the termination of the said Agreement. The said liability can be in the form of any claim by any third party dealing with the Borrower.
  1. That Borrower hereby authorises the Bank to forfeit, or utilise the said amount deposited with the Bank as security in case of the breach of the terms of the Agreement. The Bank shall be entitled hereto to be reimbursed for any losses, damages, expenses etc. which may be suffered, incurred and sustained by the Bank due to any breach or default by the Borrower of the terms of the Agreement from the Security Deposit amount by deducing the same.
  1. That the Borrower further confirms and declares that this Deed is irrevocable and as and when the Bank shall intimate the Borrower in writing that any damages, loss and dues has been incurred by the Bank stating the quantum thereof the Borrower shall indemnify the Bank for such damages, loss and dues without raising any objection.
  1. That the Borrower hereby declares not to hold the Bank responsible or liable for any loss or damage which we may suffer as a result of any acts, dent or agents appointed by the Bank for the purpose of collection of the amounts of the vehicles or otherwise howsoever.

In witness whereof, the BORROWER signed this Letter of INDEMNITY on the above-mentioned day, month and year.

  ____________________________

Mr. Mohammad Shahidullah

Proprietor of

M/s. Chittagong Steel Complex

In the presence of:

 1.

  2.                                                                     Drafted by:

 For: Hasan & Associates

DCCI Building (6th floor)

65-66, Motijheel C/A

Dhaka-1000.

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