Transfer of Liability

Mr. Z

Address….

Dear Sir,

Re:      Transfer of Liability

We acknowledge receipt of your letter No. ………… dated January 10, 2002  on the captioned subject.

It appears that Bank extended Credit facility of Tk.5.00 lac which was subsequently enhanced to Tk.6.00 lac in favour of Mr. x, the proprietor of Company 1(the Borrower). As security of the said loan facility, Mr. y and his wife Ms A (the Mortgagors) have mortgaged their three properties in favour of the Bank vide registered Deed of Mortgage No. 101 dated 10.01.1999.

We have been informed by Mr. A, one of the officers of your Bank that the Borrower does not pay his outstanding liabilities to the Bank. Moreover, at present, there is no contact between the Bank and the Borrower. However, Mr. y (one of the Mortgagors) is paying the interests, which has been accrued on account of the Borrower.

By letter dated 10.01.2002 addressed to the Bank, Mr. y intends to take over the outstanding liability of the Borrower including interests on account of his proprietorship concern Company 2and Ms A has also her consent to this arrangement. The security against the earlier loan facility i.e. registered mortgage over the said properties, will continue till adjustment of the outstanding loan with the Bank.

In the premises stated above, you have sought our opinion regarding the formalities to be observed for transferring the liability on account of Company 2.

In order to transfer the loan liability on account of Company 2, the following procedures need to be followed:

§         To issue a letter showing transfer of liability of Mr. x to Mr. y, proprietor of Company 2 and the Bank should get the said letter accepted from Mr. y.

§         To obtain usual charge documents from Mr. y, proprietor of Company 2 covering the loan amount.

§         Personal Guarantee from the mortgagors.

§         Deed of Agreement for continuing the Deed of Mortgage.

We are enclosing herewith draft Deed of Agreement to be executed between the Bank and the Mortgagors.

The file is returned herewith.

Thanking you.

Yours faithfully,

………………….

For: “The Lawyers & Jurists”

DEED OF AGREEMENT

This Agreement is made and executed on this the _____ day of _____________, 2002.

BETWEEN

BANK 1, ………………, hereinafter referred to as the BANK (which expression shall unless excluded by or repugnant to the context mean and include its successors-in-interest, legal representatives, administrators and assignees) of the ONE PART

AND

(1) Mr. x son of ……………. and (2) MS A wife of ……………. hereinafter collectively referred to as “the MORTGAGORS” (which expression shall unless excluded by or repugnant to the context mean and include their heirs, legal representatives, administrators and assignees) of the OTHER PART.

WHEREAS Mr. x, proprietor of Company 1, (hereinafter referred to as “the BORROWER”) was sanctioned over draft facility of Tk. 5,00,000.00 (Taka five lac) only, which was subsequently enhanced to Tk. 6,00,000.00 (Taka six lac) only in favour of the BORROWER.

AND WHEREAS as security of the aforesaid overdraft facility the MORTGAGORS executed registered Deed of Mortgage being No. 101 dated 10.01.1999 (“the Deed of Mortgage”) and registered Irrevocable General Power of Attorney being No. 5486 dated 09.08.94 (“the Irrevocable General Power of Attorney”), in favour of the BANK for the properties mentioned in the said Deeds. The BORROWER availed the overdraft facilities in full.

AND WHEREAS at the request of Mr. x, one of the mortgagors and proprietor of COMPANY 2, the BANK has agreed to transfer the entire loan liabilities of the BORROWER in the name of Mr. y (hereinafter referred to as the “MORTGAGOR-BORROWER”).

NOW THEREFORE THE PARTIES TO THIS AGREEMENT AGREE AS FOLLOWS:

1.               That the BANK has transferred the loan liabilities of the BORROWER including interests and other charges amounting to Tk________________ (Taka_______________) only as on __________ to the MORTGAGOR-BORROWER.

2.             That the Deed of Mortgage and Irrevocable General Power of Attorney will be a continuing security till full adjustment of the loan liabilities by the MORTGAGOR-BORROWER along with interests and other charges.

3.             That if the MORTGAGOR-BORROWER fails to adjust the loan liabilities along with interests and other charges the BANK can sell the scheduled properties without intervention of any Court of Law on the basis of the Deed of Mortgage and Irrevocable General Power of Attorney to which the MORTGAGORS shall not raise any objection whatsoever.

SCHEDULE OF THE PROPERTIES

A.     All that piece and parcel of land measuring 08 (eight) decimals situated within District Dhaka, P. S. Keraniganj, J. L. No. previously 432, now 84, Mouza Chunkutia, C.S. Khatian No. 220, S.A. Khatian No. 208, Mutation Khatian No. 208, Sabek & S. A. Dag No. 30, Hal Dag No. 46 along with all structures constructed and/or any other structures to be constructed thereon with all rights, interests, easements and benefits attached or appertaining to the land owned by Mr. x.

B.     All that piece and parcel of land measuring 4.25½ (four point twenty five and half) decimals situated within District Dhaka, P.S. Keraniganj, J.L. No. previously 432, now 84, Mouza Chunkutia, C.S. Khatian No. 133, S.A. Khatian No. 95, Mutation Khatian No. 95/12/13, C.S. & S. A. Dag No. 28 along with all structures constructed and/or any other structures to be constructed thereon with all rights, title, interests, easements and benefits attached or appertaining to the land owned by Ms A.

IN WITNESS WHEREOF, WE HEREUNTO PUT OUR SEAL AND SIGNATURES ON THIS THE ______ DAY OF _________________, 2002

Signed in the presence of(signatures, names and addresses of the witnesses):

1.

2.

 For and on behalf of the BANK:______________________

Name:

Designation:

________________

(Mr. x)

__________________

(Ms. A)

(Signature of the MORTGAGORS)

Thanking you,

Yours faithfully,

………………….

For: “The Lawyers & Jurists”

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