From: To:
The Manager,
Canara Bank,
A V Nagaram
Dear Sir,
SUB: Various Credit limits/Loans permitted to M/s. ______________________________
At our request you have permitted various credit facilities / loans for which we have executed the loan
documents. In this regard we confirm and undertake that
1. I/We do not enjoy Open Cash Credit Facility anywhere except with yourselves. I/We undertake not
to avail similar facilities elsewhere in future also except with your consent in writing.
2. I/We will not avail any loan / advance against Book Debt from any other Bank/Financial Institution
without prior written permission of the Bank.
3. The Company/firm shall not make any loan or give financial/other guarantee or provide any security
on assets of the company to any other company/ies, firm or any other person/s without prior written
permission of the Bank.
4. Funds will not be diverted for purposes other than for which the limit / loan has/have been
sanctioned.
We also undertake
1. Not to divert bank borrowings / working capital funds obtained / to be obtained.
2. Not to undertake any new project/scheme without prior written permission of the bank.
3. Not to invest by way of share capital or land or advance funds to /or place deposits with any
associates/allied sister/any other concern.
4. Not to enter into any borrowing arrangement either secured or unsecured with any other
bank/financial institution/company or any other person without prior written consent of the bank.
5. To take all necessary steps to safeguard the securities charged to the bank and to properly insure with
bank clause and authorise bank to take insurance by debiting our account on default of taking
insurance/submission of insurance copy to the bank.
6. To make necessary provisions in the OCC/operative account at the end of the month to enable the
branch to recover the interest, charges etc. debited before commencement of next month.
7. To submit returns of the firm, proprietor/partners immediately after filing.
8. To route all business transactions of the company through the account with you.
9. To pay statutory liabilities of EPF, Taxes, ESI etc. in time and not to keep overdue arrears at any time
and also undertake to inform to the Bank immediately if there is any overdue unpaid arrears of
statutory liabilities.
Apart from the above undertaking we also confirm having accepted the bank’s terms and conditions
as under:
1. As pricing of the loan is based on provisional financial statements, the Bank reserves the right to reprise
the credit exposure permitted on receipt of audited financial statements. Besides as and when rating
assigned by External Credit Assessment Institutions (ECAIs)/internal rating is downgraded, Bank
reserves the right to review and reprise the credit exposure.
2. Penal interest of 2% on the outstanding liability shall be collected if the Audited financial statement is
not submitted before 31st October of every year or within a fortnight from the date of Audit of financial
Accounts of the company/firm whichever is earlier.
Date:
Place: Borrower/s
