Joint Deed of Hypothecation
Primary security document in consortium lending. Creates a charge on movable assets.
Hypothecation Wizard
Deed of Hypothecation Preview
Legal instrument creating a charge on movable assets.
JOINT DEED OF HYPOTHECATION
FOR CONSORTIUM CREDIT FACILITIES
THIS DEED OF HYPOTHECATION is executed at Mumbai this 20 day of February, 2026 by ABC Cements Corp, a company incorporated under the Companies Act, 2013 and having its registered office at 123 Industrial Area, Mumbai, Maharashtra 400001 (hereinafter referred to as the "BORROWER").
IN FAVOUR OF:
- The Lead Bank (Lead Bank)
- The Lead Bank (Participating Bank)
- Participating Bank A (Participating Bank)
- Participating Bank B (Participating Bank)
- Participating Bank C (Participating Bank)
1. GRANT OF HYPOTHECATION
The Borrower hereby hypothecates and creates a first pari passu charge in favor of the Lenders on all its movable properties, including but not limited to stocks of raw materials, goods-in-process, finished goods, stores and spares, and book debts (hereinafter collectively referred to as the "Hypothecated Assets") stored at Factory premises at Plot 45, MIDC, Pune.
PARTICIPATING BANKS & LIMITS:
| Lender Bank | Share (%) | Limit (Lakhs) |
|---|---|---|
| The Lead Bank | 40% | 200 |
| Participating Bank A | 30% | 150 |
| Participating Bank B | 15% | 75 |
| Participating Bank C | 10% | 50 |
2. INTEREST SCHEDULE
| Lender Bank | Rate of Interest |
|---|---|
| The Lead Bank | 10.5% p.a. |
| Participating Bank A | 10.25% p.a. |
| Participating Bank B | 11.0% p.a. |
3. MARGINS
The Borrower shall maintain the following minimum margins on the Hypothecated Assets:
- 25% % against raw materials and finished goods
- 15% % against stores and spares
- 30% % against goods-in-process
- 20% % against book debts < 90 days
IN WITNESS WHEREOF the Borrower has caused its Common Seal to be hereunto affixed the day and year first above written.
For ABC Cements Corp
______________________
Authorized Signatory
Stamping and Registration
This deed must be stamped as per the State Stamp Act. Additionally, Form CHG-1 must be filed with the ROC within 30 days of execution to register the charge.