Common use of Drawdown/ Disbursement Clause in Contracts

Drawdown/ Disbursement. 2.6.1. The Bank shall disburse the Facility in the mode and manner specified in the Schedule hereunder written and as per the disbursement schedule as may be provided by the Bank to the Borrower in their sole discretion, either in one lump sum or in suitable installments/tranches after a disbursal request form is sent by the Borrower to the Bank. Decision of the Bank to make disbursement shall be final, conclusive and binding upon the Borrower. The Borrower shall acknowledge the receipt in the form required by the Bank, of each amount disbursed. However, the disbursement in any event shall be deemed to have been made on the date of disbursement by way of cheque, pay order or transfer to his operating account as the case may be. Interest on the Facility will begin to accrue in favour of the Bank as and from the date of each disbursement of the Facility. In case the Borrower delays or does not drawdown the entire Facility within such period as may be notified by the Bank to the Borrower, at the sole discretion of the Bank, then the Bank, shall nonetheless be entitled to (i) reduce the availability of the amounts of the Facility and/or (ii) encash the PDC’s on the respective dates and/or (iii) act upon the standing instructions (“SI”), deduct the account of the Borrower through ECS or NACH or otherwise as the case may be and/or (iv) suspend or cancel further disbursements of the Facility.

Drawdown/ Disbursement. 2.6.1. The Bank shall disburse the Facility in the mode and manner specified in the Schedule hereunder written and as per the disbursement schedule as may be provided by the Bank to the (Borrower Signature) (Co-borrower(s) Signature) Borrower in their sole discretion, either in one lump sum or in suitable installments/tranches after a disbursal request form is sent by the Borrower to the Bank. Decision of the Bank to make disbursement shall be final, conclusive and binding upon the Borrower. The Borrower shall acknowledge the receipt in the form required by the Bank, of each amount disbursed. However, the disbursement in any event shall be deemed to have been made on the date of disbursement by way of cheque, pay order or transfer to his operating account as the case may be. Interest on the Facility will begin to accrue in favour of the Bank as and from the date of each disbursement of the Facility. In case the Borrower delays or does not drawdown the entire Facility within such period as may be notified by the Bank to the Borrower, at the sole discretion of the Bank, then the Bank, shall nonetheless be entitled to (i) reduce the availability of the amounts of the Facility and/or (ii) encash the PDC’s on the respective dates and/or (iii) act upon the standing instructions (“SI”), deduct the account of the Borrower through ECS or NACH or otherwise as the case may be and/or (iv) suspend or cancel further disbursements of the Facility.