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Pari Passu Agreement

Pari Passu Agreement

Legal contract binding all lending consortium members and the borrower regarding shared security.

What is it?

It legally binds all parties to specific rules regarding shared security, ensuring proportional distribution of proceeds.

Key Clauses

  • Ranking of Charge
  • Custody of Title Deeds
  • Sharing of Proceeds

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Pari Passu Inter-Se Agreement

Joint Charge Sharing Contract

THIS AGREEMENT made this 20 day of February 2026 AMONG:

1. ABC Infrastructure Ltd., a Company incorporated under the Companies Act, having its Registered Office at 123, Business Park, Phase II, Mumbai - 400001 (hereinafter called "the Borrower") of the ONE PART;

2. State Bank of India, a Body Corporate constituted under the Banking Companies Act, having its Head Office at Madam Cama Road, Nariman Point, Mumbai (hereinafter called "the Lead Bank") of the SECOND PART;

3. HDFC Bank Ltd., having its Registered Office at [Address not specified] (hereinafter called "the Participating Bank") of the THIRD PART.

WHEREAS:

A. By a Joint Equitable Mortgage created on [Date], the Borrower has created a mortgage in favour of the Lead Bank and Participating Bank to secure the Term Loan of INR 1,500,000,000.00.

B. It is agreed between the parties that the charges created by the Borrower in favour of the Lead Bank and the Participating Bank shall rank pari passu (equally) without any preference or priority for one over the other.

NOW THIS AGREEMENT WITNESSETH:

1. PARI PASSU RANKING:

Notwithstanding the dates of execution of documents or creation of mortgages, the debts due to the Lead Bank and Participating Bank shall rank pari passu in all respects against the secured assets.

2. CUSTODY OF DOCUMENTS:

The Title Deeds of the mortgaged properties shall legally remain in the custody of the Lead Bank acting as custodian for all consortium members.

3. CONSORTIUM MEMBERS:

The following banks are parties to this pari passu arrangement:

1. State Bank of India - Rs. 500 Cr
2. HDFC Bank Ltd - Rs. 400 Cr
3. ICICI Bank Ltd - Rs. 350 Cr
4. Axis Bank Ltd - Rs. 250 Cr

4. ENFORCEMENT & SHARING:

Neither bank shall enforce the security without prior consultation. Proceeds shall be shared in proportion to their outstanding dues.

______________________

For ABC Infrastructure Ltd.

______________________

For State Bank of India

______________________

For HDFC Bank Ltd.

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