FORM 006 |
(Regulation 25) |
Cooperative Societies Act |
INSTRUMENT OF CHARGE |
I, _________________________ of _________________________ hereinafter called (“the borrower”), being owner of the property described in the Schedule hereto and being a member of the ________________________ (hereinafter called (“the Society”), in consideration of the sum of $___________ lent to me this day by the Society, the receipt of which is hereby acknowledged, I do hereby create a charge on the property described in the Schedule attached, in favour of the Society as security for the repayment to the Society of the said sum of $________ together with interest thereon at the rate of __________ % a year, by ________ instalments of $____ as from the _________ day of _______, 20_____. |
Now these presents witness that in consideration of the sum lent to the borrower as aforesaid the borrower hereby agrees that the charge hereby created is subject to the following covenants and conditions, that is to day: |
(1) That he or she will repay the principal together with interest thereon on the _______ day of ___________________ 20____. |
(2) That he or she will not, at any time while any moneys remain owing hereunder, do or allow to be done any act whereby the property may become prejudicially affected |
(3) That he or she is entitled to retain possession and use of the property unless he or she makes default |
(a) | in the payment of any instalment or of the principal or interest thereon; or |
(b) | in the observance or performance of any covenant or condition herein expressed in which case the Society may immediately upon such default or at any time thereafter, through an agent authorised by the Society in that behalf— |
| (i) | seize and take possession of the property or any part thereof, and |
| (ii) | sell the property so seized and taken possession of either at auction or by private treaty and in either case the property may be sold separately or together or in lots or for a lump sum payment or for payment by instalments as the Society may deem expedient. |
(4) That upon a sale of the property or of any part thereof by the Society the following provision shall have effect— |
(a) | the proceeds of sale shall be applied in accordance with sections 102 and 106 of the Cooperative Societies Act; |
(b) | A purchaser of such property shall not be bound to inquire as to the propriety or regularity of the sale or shall be affected by any impropriety or irregularity of or at such sale; |
(c) | The society shall not be answerable to the borrower in damages or otherwise for any loss occasioned to the borrower by the sale or for any act, neglect or default of the society or of its authorised agent. |
SCHEDULE |
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(Add additional sheet if space allotted is too small) |
Executed in quintuplicate at _________________________ this _____________ day of _______________________, 20__. |
___________________________ |
Signature of Borrowing Member |
Signed in our presence by the said ____________________________ who is personally known to us. |
___________________________ |
President/Chairperson |
___________________________ |
Secretary |
of the _____________________ |
NOTE: To be signed in quintuplicate in accordance with section 103(1) of the Cooperative Societies Act. |