DEED OF HYPOTHECMION
THIS DEED OF HYPOTHECATION executed at Mumbai this ..............day of …………..Two thousand and one by ABC POWER GENERATION COMPANY LIMITED, a Company registered under the Companies Act, 1956 and having its Registered Office at …………Mumbai, In the State of Maharashtra (hereinafter referred to as the 'Borrower which expression shall, unless It be repugnant to the subject or context thereof, include its successors and assigns).
IN FAVOUR OF
THE XYZ FINANCE COMPANY LTD., a Company registered under the Companies Act, 1956. having its Registered Office at Mumbai whose name and address is set out in Schedule I hereto (hereinafter referred to as the "XYZF/"Lender which expression shall include its successors and assigns as the subject or context may require or admit).
WHEREAS
(1) By a Foreign Currency Loan Agreement dated the .............. day of 1998 entered into between the Borrower and XYZF,(hereinafter referred to as the Foreign Currency Loan Agreement").XYZF has agreed. to sanction Foreign Currency Loan to the Borrower to the extent of Rs. 47.00 crore on the terms and conditions contained in the Foreign Currency Loan Agreement as set out against its name in Schedule I hereto, (hereinafter referred to as "the Loan' or "the Loans' as the subject or context admits).
(2) One of the conditions of the Foreign Currency Loan Agreement is that the Loans together with interest at the agreed rates, liquidated damages, premia on prepayment or on redemption, costs, expenses and other monyes including any increase as a, result of devaluation/revaluation/fluctuation in the foreign currencies involved payable whatsoever, as stipulated in the Foreign Currency. Loan Agreement shall be secured, Inter afia, by a first charge by, way of hypothecation of all the Borrower's movable including movable machinery, machinery spares, tools and accessories, (excluding Borrower's stocks of raw materials, semi-finished, finished goods, consumable stores and book debts) and such other movables present and future on pad passu basis with the other participating Financial Institutions and Banks (referred to as Lenders) under the Foreign Currency Loan Agreement.
(3) XYZF has called upon the Borrower to execute these presents, which the Borrower has agreed to do in the manner hereinafter expressed.
NOW THEREFORE THESE PRESENTS WITNESSETH THAT
1. In pursuance of the Foreign Currency Loan Agreement and in consideration of XYZF having lent and advanced and/or agreed to lend and advance the Loans to the Borrower, for the purposes and subject to the terms and conditions set out in the Foreign Currency Loan Agreement and in consideration of the premises, the Borrower do hereby covenant with XYZF that it shall repay the Loans to XYZF and shall pay all interest at the agreed rates, liquidated damages, premia on prepayment or on redemption, costs, charges and expenses and all other monies as stipulated and In the manner set out in the Foreign Currency Loan Agreement and shall duly observe and perform all the terms and conditions of the Foreign Currency Loan Agreement.
2. In pursuance of the Foreign Currency Loan Agreement and for the consideration aforesaid, the whole of the movable properties of the Borrower including its movable plant and machinery, machinery spares, tools and accessories, (excluding Borrowees stocks of raw materials, semi-finished, finished goods, consumable stores and book debts) and such other movables both present and future whether installed or not and whether now lying loose or In cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or about all the Borrower's factories, premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the Borrower or in the course of transit or on high seas or on order or delivery (hereinafter collectively