AGREEMENT FOR OVERDRAFT

th
This agreement for overdraft is made on this day of 200 between Shri /Smt
______________________________________________ SO/ Do / Wo
______________________________________ Sh. (herein after referred to “THE BORROWER”) of
the first part.

AND

Oriental Bank of Commerce, a body corporate, constituted under the Banking Companies (Acquisition
& Transfer of Undertaking) Act No. 40 of 1980, having its corporate Office at Plot No. 5, Institutional
Area, Sector -32, Gurgaon, 122001 and amongst other branches a branch at
___________________________ (Herein after referred to as “THE BANK”) of the second
part.

WHEREAS the borrower is employee of the Bank and at present working in Scale/Grade as Chief
Manager in the Branch office at E Block, Connaught Place, New Delhi of the bank.
WHEREAS at the request of the Borrower, the Bank has allowed/agreed to allow the financial
assistance/overdraft facility of ₹______________ (Rupees ____________________________ only) to
the borrower including renewals, adhoc enhancement/ regular enhancement thereof from time to time,
or otherwise to obtain assistance from and incur liability, repayable to the Bank on demand being
made to the borrower.

In consideration of the aforesaid Financial assistance /credit facility, now the borrower hereby agrees
with the Bank as under: -

1 That the borrower shall pay interest at the rate of zero percent per annum over the
Reserve Bank Of India/ Prime lending Rate of the Bank, with a minimum of ______ Percent
per annum calculated on the daily balances due to the bank in the said overdraft/current
account and charged on monthly rests so long as the amount due from the borrowers is
not paid in its entirely and the same will form part of the principle and the amount so
calculated shall become the principle for the next period/rest and so on and carry interest
with agreed rests at the above mentioned rates, provided that the rate of interest shall be
subject to change from time to time with the changes in Prime Lending Rate/ internal policy
of the Bank at its absolute discretion or on receipt of any directive from Reserve Bank Of
India regarding rate/rests at which the interest is to be charged. Further, the Bank shall
have the right to recover interest tax or any other tax or charges levied or to be levied at the
rate specified by the government of India or any authority for the time being in force, from
time to time.

2 That it is specifically agreed by the borrower that the borrower shall pay additional/penal
interest at the rate of 2% per annum over and above the normal rate of interest with agreed
rests as agreed under this agreement, in case the borrower violates and /or defaults any
terms, conditions and/or undertakings and/or provisions and clauses of this agreement,
from the date the Overdraft/Current account becomes irregular till the
realization/adjustment/liquidation of the sum due/outstanding and or from the date of initial
advance / amount paid, as the case may be.

3 That the borrower shall not be entitled to claim any interest to any sum / amount which may
at any time stand to their credit in this loan facility overdraft / current account.

4 That the borrower hereby agrees that in case there indebitness / dues in the said loan
overdraft / current account exceeds the said credit limits, the borrower shall be liable for the
excess amount also including interest, costs, expenses and other usual bank charges.

5 That the borrower hereby agrees to accept conclusive proof of the correctness of any sum
claimed to be due / outstanding on the basis of statement of overdraft/ current account
made out from the books of the bank and such statement of overdraft / current account
made out from the books of the bank and signed by the manager / agent / overdraft /
current accountant and / or other duly authorized officer of the bank without the production
 of any other voucher, document or paper shall be conclusive and binding against him and
the borrower shall not question or challenge or dispute the same.

6 That death and / or retirement and / or suspension and / or dismissal / termination /

removal from service and / or superannuation and / or retirement of any nature of the
borrower shall not impair or discharges the liability of the borrower. An agreement shall be
applicable to all current and future transactions in continuous operations.

7 That the borrower hereby creates charge and lien upon his provident fund account /
amount, gratuity, leave encashment, pension, earned leaves, one time dues, etc. and the
bank shall have full right, power and authority to withhold and / or adjust the same at any
relevant point of time or at the time of severance of the services of the borrower with the
bank and the borrower has no objection to the same.

8 That it is also agreed that the bank will always be liberty in its discretion to stop making
advances / permitting the overdraft facility at any time without previous notice and without
assigning any reason whatsoever to the borrower even though the said limit has not been
fully availed by the borrower.

9 That it is also agreed that amount due to the bank on the loan overdraft / current account
shall be payable by the borrower at branch of the bank where the overdraft / current
account of the borrower is maintained or at the Head Office of the bank at New Delhi.

10 That it is also agreed by the borrower that any change in the address of the borrower shall
be intimated in writing to the bank immediately by registered AD or personally in writing to
the bank.

11 That it is declared by the name of the borrower that his / her name of his firm / company /
society where he is directly or indirectly related does not appear in the defaulter’s list
issued by the RBI or any other financial institution. The first party hereby authorizes /
empowers and gives irrevocable and unconditional consent to the bank to disclose his
name to the third person under any law for the time being in force in writing and or
publication and the borrower shall not question, challenge and dispute such act of the
bank.

12 That it is also agreed that the borrower undertakes the credit facility/financial assistance
allowed or to be allowed by the bank shall be for bonafide purpose and shall not be utilized
for any speculative/betting purpose or any such other purpose which is opposed to pubic
policy and/or for purchasing shares etc. like instruments.
 13 The bank shall have absolute discretion to renew/enhance/extend/reduce/ stop the said
credit facility or refuse to renewed/or enhance the aforesaid credit facility, subsequent to
the initial credit facility or to reduce/stop/cancel the overdraft/credit facility without notice to
the borrower and the borrower shall have no right to question, challenge and dispute such
discretion and act of the bank.

14 That it is further agreed that during the currency of this agreement, the borrower shall deal
exclusively with this bank only for all types of credit facilities in future and shall not obtain
any fund/non fund based credit facility from any other source whatsoever without the
concurrence of the bank in writing.

15 Notwithstanding anything to the contrary herein contained and upon the happening of any
of the events as provided hereinafter of which the bank shall be the sole judge, the entire
amount/sum/due/amount outstanding in the overdraft/current account together with interest
to be charged as agreed and cost, expenses, and other usual bank charges, shall become
due on demand being made in writing and the bank will entitled to realise the same and
enforce the assets/security if any, at the cost and expenses of the borrower and further the
borrower shall render themselves liable to legal action, both civil or criminal.

a) Any representation or statement in the borrower’ loan application being found to be

incorrect.

b) The borrower committing any breach or default in the performance or observance of

any term, condition, provision or any clause contained in these presents or in the
loan application or bank’s sanction letter, as the case may be.

c) Execution or distress or other process being enforced or levied upon or against the
whole or any part of the borrower property whether secured to the bank or not.

d) The borrower being adjudicated insolvent or taking advantage of any law for the
relief of insolvent debtors or entering into any arrangement or composition with the
creditors or committing any act of insolvency.

e) In case of diversion of funds/amount of loan/advance or attempt to divert the same,

so disbursed/paid.

f) On overdraft/current account of excess borrowing due to overdrawal of limit and/or

Cheques not being paid in time or return unpaid.

g) If any other event or circumstances shall occur which shall in opinion of the bank be
prejudicial to the interest of the bank.

On the question whether any of the matters, events or circumstances mentioned in sub-clause (a) to
(g) above have happened, the decision of the bank shall be conclusive and binding on the borrower.

16 That as aforesaid, the rate of interest shall be subject to change from time to time as per
RBI instructions/bank guidelines and it is specifically agreed between the parties that no
 notice of any kind whatsoever regarding the said change/variation need be given to the
borrower by the bank.

17 That this agreement constitutes an exclusive and irrevocable agreement between the bank
and the borrower with respect to the subject matter hereof.

18 That it is specifically agreed that none of the provisions of this agreement shall be deemed
to have been waived by any act of or acquiescence on part of the bank, its employees,
official or agent, but only by an instrument in writing signed by an authorised and
empowered officer of the ban. No waiver of any provision of this agreement shall constitute
a waiver of any other provision or of the same provision on other occasion.

19 That it is also agreed that except as otherwise provided herein, if any provision of this
agreement shall be held by a court of competent jurisdiction to be illegal, invalid or
unenforceable, the remaining provision and clauses shall remain in full force and effect.

20 That it is agreed by the borrower that as and when the borrower, being the employee of the
bank, is transferred to any other branch, department or place, the account pertaining to the
overdraft facility shall be transferred to the said branch and no fresh agreement shall be
subsisting, continuing and valid for all such intends and purposes.

21 That the shall be at liberty to reschedule the repayment of the dues in the overdraft account
of the borrower at the particular point of time and repayment of the overdraft loan
account/dues can be fixed by the bank at any rate/amount in monthly installment to be paid
by the borrower, without any notice to the borrower.

22 The borrower further agrees and hereby gives consent to the bank the during the currency
of loan the bank shall be at liberty to credit the salary directly or any other emoluments etc.
to the overdraft account and further the interest portion and/or overdue portion shall be
adjusted out of the salary so credited by the bank.

23 The borrower hereby unequivocally and unconditionally agrees with the bank that any
information, declaration given/submitted by the borrower to the bank by way of application
or otherwise, if found incorrect & untrue/false at any stage, and any undertaking in this
agreement or otherwise is violated by the borrower, it would tantamount to misconduct and
the bank may take disciplinary action accordingly against the borrower, irrespective of
continuation of overdraft facility.

24 That the words denoting singular in this agreement including plural and vise versa.
 25 That any notice by the bank in writing under this agreement or demand in writing shall be
deemed to have been duly served to the borrower, in case it is sent by post addressed to
him/them at the address hereunder written and shall be effectual notwithstanding the death
or the change of address unless intimated by the borrower to the bank in writing, in case it
is sent by electronic mail or facsimile transmission upon the sending of the notice and upon
the confirmation report.

Place

Date

Signature of the borrower

Name _______________________

Address _______________________

For Oriental Bank of Commerce

(Signature)

Sh.

MANAGER/ SR. MANAGER/ CHIEF MANAGER/

ASST. GENERAL MANAGER