APPENDIX III

THIS AGREEMENT is executed on thi s ................. day of one Thousand nine hundred and ......................................................... Between (H.E. the name of the local authority) (hereinafter called "the Borrower") of the one part and the Governrnent of Kerala there in after called "the Government") of the other part;

Whereas on the application of the borrower, the Government have sanctioned a loan of Rs in G.O dated under the Kerala Local Authorities Loans Act, 1963 (hereinafter referred to as the said Act) for the purpose of (H.E. the purpose) subject to the terms and conditions contained in the said Act and in the Kerala Local Authorities Loans Rules, 1965 (hereinafter referred to as the "said Rules") and those hereinafter contained to which the borrower has agreed;

Whereas the said borrowing has been duly authorised by Resolution No.......... dated................passed at a duly authorised meeting of the Borrower held on.......... Now These presents witness and it is hereby agreed as follows :-

  1. The loan amount of Rs....................under this agreement shall be secured on the funds of the Borrower.
  2. The loan shall bear interest at the rate of................per cent per annum from the date of disbursement of the loan. In case the borrower commit default in payment of any instalment compound interest at the rate of percent per annum shall be paid on the instalment thus defaulted. Notwithstanding the above condition the local authority shall be liable to pay interest and penal interest at the rates that may be fixed by the Government from time to time.
  3. The loan amount with interest thereon shall be paid in .................... equated
    instalments the first instalment being payable on completion of one year from the date of disbursement of the loan and the subsequent instalments shall be paid on the corresponding dates of the succeeding years.
  4. The loan amount shall be utilised by the Borrower only for the purpose of... and for no other purpose.
  5. The Borrower shall forthwith pay to the Government the unexpended portion if any, of the loan amount and the loan shall be reduced by an equivalent amount.
  6. The Borrower shall not before the repayment of the loan amount in full, create any charge on the fund of the Borrower without the previous sanction in writing of the Government.
  7. The Borrower shall furnish to the Examiner of Local Fund Accounts, the Accountant General, and any other person authorised by Government the information which they may require regarding its fund and the utilisation of the loan amount.
  8. On breach of all or any of the terms and conditions herein contained, the whole amount then outstanding together with interest thereon shall immediately be repaid to the Government in a lump.
  9. In case the Borrower commits default in repayment of any of the instalments of the loan amount or interest on due dates the Government shall be competent to attach the funds of the Borrower on which the loan has been secured, under S. 5 of the said Act.
  10. The Borrower agrees that all sums found due to the Government under or by virtue of this agreement shall be recovered from the properties movable and immovable of the Borrower, as if they are arrears of Land Revenue under the provisions of the Revenue Recovery Act for the time being in force and in such other manner as the Government may deem fit.


In witness whereof Shri....................................................................... for and on behalf of the Borrower and Shri ....................................................................... for and on behalf of the Government have hereunto set their hands the day and year first above written.

Signed by Shri In the presence of

witnesses.
1.
2.

Signed by Shri..........................................................................In the presence of witnesses.
1.
2.