SECURITY BOND BY A SURETY

SECURITY BOND BY A SURETY

SECURITY BOND BY A SURETY

BY THIS BOND Mr.. residing at …. hereinafter referred to as the ‘Surety’ acknowledges himself to be
bound to Mr. B hereinafter referred to as the ‘Creditor’ in the sum of Rs.. lent and advanced by the
Creditor to Mr. C residing at … the Debtor, with interest thereon at the rate of Rs… percent per annum
from the date hereof till payment.
WHEREAS the Creditor has lent and advanced to Mr. C the Debtor abovenamed a sum of Rs…
repayable by him with interest thereon at the rate of Rs… per cent per annum.

AND WHEREAS the said amount has been advanced against the surety giving a guarantee for
repayment of the said amount by the said Debtor and against the said guarantee being secured by a
mortgage of the property of the Surety described in the Schedule hereunder written and which the Surety
has at the request of the Debtor agreed to do.

NOW THIS DEED WITNESSETH that in pursuance of there request made by the Debtor to the Surety
the Surety doth hereby guarantor and covenants with the Creditor that in default of payment of the
amount of Rs… with interest as aforesaid by the Debtor to the Creditor within the lime stipulated by him in
the separate writing executed by the Debtor-for evidencing the said Debt, in favour of the Creditor, the
surety shall pay to the Creditor the said amount of Rs… or any part thereof remaining unpaid with Interest
at the rate of … aforesaid till payment on demand made to the Creditor in writing

AND THIS DEED FURTHER WITNESSETH that pursuant to the said agreement, the Surety as a
security for payment of the said amount by the Surety, doth hereby grant and transfer by way of
mortgage the said property described in the Schedule hereunder written TO HAVE and TO HOLD the
same unto the Creditor subject to the covenant for redemption hereinafter contained And it is agreed anddeclared that in the event of the Surety being required to pay the said amount on default by the Debtor

and on the surety so paying the said amount or any part thereof due and payable to the Creditor the
Creditor shall release and recovery the said property to the Surety but at the costs of the Surety And it is
further agreed that in the event of the Surety becoming liable and failing to pay the said amount or any
part thereof as aforesaid,

the Creditor will be entitled to sell the said property through a Court of law and
to appropriate or apply the net sale proceeds thereof towards payment of the amount to the Creditor by
the Surety and/ or the Debtor including costs of the suit and sale proceedings and to pay the balance if
any to the Surety.

And the Surety covenants with the Creditor that he has full right to mortgage the said
property as aforesaid. And the condition of the Bond is that it will be void if the Debtor pays the said
amount to the Creditor with interest as aforesaid, within the time stipulated otherwise, and failing which
this Bond will remain in full force and effect.
THE SCHEDULE ABOVE REFERRED TO

Signed and delivered by the
within named Surety Mr. A
WITNESSES;

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