Board resolution

Draft is provided by the Bank.

Not available

BOARD RESOLUTION FOR AVAILING & SECURING CREDIT FACILITIES 


Minutes of the meeting of Board of Directors of …………………………. Private 
Ltd. held on ………………… at ......................... 

The Board was informed that Bank of Baroda Sukher branch has agreed, 
at the request of the Company, to grant the Company an adhoc cash 
credit facility as per sanction letter dated ……………………………. 

Facility                                                                 Limit (Rs. In lac) 
1. Cash credit – Hypothecation of stock & book debts                …………………. 
Total                                                                        ……………… 

Inter alia against the following securities and on the terms and 
conditions as contained in the Bank's letter of sanction dated ……………. 
and after noting it was: 

(1) Resolved that sanction be and is hereby given to the Company to 
avail/continue 
To avail from Bank …………………………….,  Branch the facilities up to the 
limits mentioned above inter alia against the following securities 
namely: 

1. Demand Promissory Note. 
2. Letter of continuing security. 
3. Hypothecation of goods / Machinery / Book Debts and other movables. 
4. Undertaking to create Equitable Mortgage over the fixed assets / 
immovable properties of the Company situated at “………………………………………………….” 
5. Personal guarantee of Shri ……………………….., Shri ………………………. and Shri 
…….. 
6. Various Undertakings namely- 
•        An undertaking not to withdraw deposit by the Directors till the 
advances is liquidated 
•        Declarations cum Undertakings cum Authority 

and the Company do execute the relevant documents therefore and 
execute undertaking to  create extension of  Equitable mortgage over 
the fixed / immovable properties of the Company situated at 
…………………………………………. in favour of Bank of Baroda to secure the due 
repayment of the outstanding in the various credit facilities. 

(2) Resolved further that the documents be executed by the Company and 
the common seal of the Company be affixed to the Demand Promissory 
Note / Letter of continuing security / Instrument of Hypothecation of 
goods /movable Machinery / Book Debts / Instrument of Power of 
Attorney / modifying agreement in the presence of Mr. ……………… and Mr. 
………………………. two of the directors of the Company who do sign the same in 
token thereof and that other documents, Such as various undertakings 
and Form No. 8/13 be executed by any one of the Directors for the time 
being of the Company. 



(3) Resolved further that the Company do execute undertaking to create 
extension of mortgage by deposit of title deeds in favour of Bank of 
Baroda by depositing the title deeds, documents, evidences, writing 
with Bank of Baroda, by giving an oral consent to Bank of Baroda to 
continue to hold and retain the title deeds, documents, evidences, 
writings in respect of the Company's immovable properties situate at 
……………………………… together with all buildings and structures thereon and 
all plant and  machinery attached to the earth or permanently fastened 
to anything attached to the earth (hereinafter collectively referred 
to as the said immovable properties) to secure the due repayment by 
the Company of outstanding due under the facilities indicated above 
together with interest, additional interest, further interest by way 
of liquidated damages, compound interest, commitment charges, premia 
on repayment or on redemption,  costs, charges, expenses and other 
moneys including any increase as a result of devaluation / 
Revaluation / Fluctuation in the rates of Exchange of Foreign 
currencies involved payable by the Company to Bank of Baroda under 
their Heads of Agreement / Loan Agreement / Letters of Sanction / 
Memo. of terms and conditions amended from time to time. 

(4) Resolved further that Shri …………………… and Shri ………………………………….., 
Directors of the Company, be and are hereby severally authorised to 
deliver to and deposit with Bank of Baroda the various title deeds, 
writings and evidences and to give oral consent as aforesaid for and 
on behalf of the Company with an intention to create a mortgage / 
extend the mortgage over the said immovable properties belonging to 
the Company. 

(5) Resolved further that Shri .................................and 
Shri .................................Directors of the Company be and 
are hereby severally authorised to state on behalf of the Company that 
the said title deeds so deposited are the only documents of title in 
the possession, power and control of the Company and that the Company 
has a clear and marketable title to the said immovable properties and 
that the security in favor of Bank of Baroda shall ensure in respect 
of the Company's said immovable properties both present and future and 
also to give a declaration on oath to the satisfaction of Bank of 
Baroda. 

(6) Resolved further that any two of the Directors of the Company be 
and are hereby authorised to execute Letters of Acknowledgment of Debt/ 
Balance Confirmation letters favoring Bank of Baroda for and on behalf 
of the Company acknowledging the liabilities of the Company to Bank of 
Baroda in respect of the various credit facilities availed by the 
Company from time to time as and when called upon to do so by Bank of 
Baroda. 

(7) Resolved further that Shri …………………………………. , 
Shri .................................and 
Shri .................................be and are hereby requested to 
execute letters of guarantee and letters of Acknowledgment of Debt/ 
Balance Confirmation letters in their respective personal capacity as 
guarantors favoring Bank of Baroda to secure the various credit 
facilities availed/ to be availed by the Company from Bank of Baroda 
and acknowledging their liability as guarantors to the said 
facilities. 

(8) Resolved further that Bank of Baroda be and is hereby authorised 
to debit the 
cash credit or any other account or open any separate account for the 
purpose of debiting the amounts of Bills purchased by the Bank which 
have not been paid on due dates by the drawee/s, amounts paid to the 
beneficiaries under guarantees issued by the Bank on behalf of the 
Company and amounts paid by the Bank under letters of credit 
facilities, and to apply and recover interest at applicable rates. 

(9) Resolved further that the cash credit accounts and other accounts 
with Bank of Baroda be operated by any one of the directors of the 
Company for and on behalf of the Company. 

(10) Resolved further that Bank of Baroda be and is hereby requested 
to honour all cheques, Bills of exchange, promissory notes drawn, 
endorsed, accepted or made by the Company and to act on the 
instructions given by any one of the directors relating to the above 
accounts whether the same be overdrawn or not and whether or not 
relating to the transactions of the Company. 

(11) Resolved further that the Company do file the requisite 
particulars of charge /modification of charge to be created by the 
Company with the Registrar of Companies. 

(12) Resolved further that copies of the foregoing resolutions 
certified to be true by Shri ……………………………. Chairman of the Company be 
furnished to Bank of Baroda and they be requested to act thereon. 

Certified to be true, 




(……………………………..) 
CHAIRMAN