The borrowers would have to commit to selling of tea of value
equivalent to at least 200% of their annual debt-servicing requirement
through one particular tea Auction center of their choice and designate
one particular broker operating at that Auction center for selling
their tea.
The designated broker would deduct from the auction sale proceeds such
amounts as advised by the SPTF from time to time and directly remit to
the specified bank account of the SPTF. The office of the SPTF would
arrange to refund excess balance if any to the borrowers account. An
enabling provision to this effect would be incorporated in the Loan
Agreement between the borrower and the SPTF.
The borrower would have to authorize the designated broker in writing
to remit the dues of SPTF from the sale proceeds directly to the
specified bank account of the SPTF. Acceptance of this arrangement
should be evidenced through a letter of undertaking issued by the
designated broker.
ADDITIONAL SECURITY :-
In case the working results of the applicant tea company are found to
be inadequate to meet the repayment requirements towards loans advanced
by SPTF, a corporate guarantee from a sister concern having sound
financial position will be accepted as an additional security. The
following documents pertaining to the company providing the corporate
guarantee should be submitted :
- Memorandum and Articles of the Association;
- List of Directors;
- Copies of audited Balance Sheet and P / L A/cs. for last 5 years;
- Corporate Guarantee on a non-judicial stamp paper of Rs. 50/- duly
signed by the accredited Director / person with a Board's resolution as
per prescribed format.
