Dealing with the Commodities Sample Clauses
The "Dealing with the Commodities" clause outlines the procedures and responsibilities related to the handling, management, and transfer of commodities under the agreement. It typically specifies how commodities are to be delivered, stored, inspected, or otherwise managed by the parties involved, and may address issues such as quality standards, risk of loss, and timing of delivery. This clause ensures that both parties have a clear understanding of their obligations regarding the commodities, thereby reducing the risk of disputes and ensuring smooth execution of the contract.
Dealing with the Commodities a) The Borrower shall not, without previous permission in writing of the Bank, sell or otherwise part with the possession/ownership of the commodities. Where with such permission of the Bank the commodities is sold or disposed off by the Borrower, the value of such produce sold shall be paid forthwith to the Bank towards repayment of the Facility.
b) It shall be the duty of the Borrower to safeguard and diligently manage the commodities and do everything that is necessary to preserve, protect and maintain the quality of the commodities Whenever required by the Bank, the Borrower shall do everything necessary for transferring to and effectively vesting in the Bank or any of its officers or nominees titled to the commodities. The Borrower shall keep the Bank informed of the true condition of the commodities.
c) The Borrower hereby expressly undertakes to hold the commodities in trust for and as agent of the Bank until full repayment of all the balance due to the Bank including interest, cost and expenses of the bank. The Borrower(s) further agrees to deal with and dispose of the Commodities in the manner instructed by and under the supervisionand control of the Bank, its agents, officers or nominees.
d) The Borrower shall insure/ensure insurance of the commodities as may be required by the Bank against loss or damage by fire and other risks as may be required by the Bank and shall bear all costs, expenses, charges, levies, taxes, fees etc. payable in connection with the commodities, their storage in the warehouse/godown, insurance thereof, provision of security and/or the taking of any action for protection/preservation thereof, protection of the Bank’s interest therein, as also all costs, expenses and charges payable in connection with the enforcement of the commodities and sale thereof. In the event the Bank is required to pay any amounts in this regard the same shall form part of the Balance due to the Bank and the borrower(s) shall promptly reimburse the said amounts to the Bank on receipt of notice in this regard. Any such insurance shall be in the name of the Bank/ assigned to the Bank as required by the Bank. It shall be also lawful for but not obligatory upon the Bank to insure the commodities by debit to the Borrower's account. The proceeds of any such insurance shall, at the discretion of the Bank either applied towards replacement of the commodities or towards the satisfaction of the balance due to the Bank.
e) The Borrower hereby declares and con...
Dealing with the Commodities. The Borrower shall not, without previous permission in writing of the Bank, sell or otherwise part with the possession/ownership of the commodities. Where with such permission of the Bank the commodities is sold or disposed off by the Borrower, the value of such produce sold shall be paid forthwith to the Bank towards repayment of the Facility.