HOME LOAN BORROWERS ARE UNAWARE OF THE FACTS THAT AT THE TIME OF AVAILING THE HOME LOAN EITHER FOR THE PURCHASE AND CONSTRUCTION OF THE HOUSE(COMPOSITE LOAN) OR FOR THE PURCHASE OF THE HOUSE OR APARTMENT, A DECLARATION CUM INDEMNITY BOND WILL BE SIGNED AS PER THE DIRECTIVES OF THE RESERVE BANK OF INDIA, WHICH GENERALLY CONTAINS THE FOLLOWING CLAUSE:
DECLARATION CUM INDEMNITY BOND EXECUTED BY THE BORROWER IN FAVOUR OF THE BANK
Further I indemnify XXXHFL(BANK) from any losses, interests, claims or rights, financial or otherwise if any, arising out of non availability of documents, minor’s interest, litigation, non regularization of deviations in constructions etc and other acts of omission/commission in connection with the said schedule property and construction /development as mentioned above and declare and assure that the Schedule property has been constructed as per sanctioned plan from XXXXX and if at any point of time, ever proved otherwise, the XXXHFL(BANK) may initiate action for the recovery of the loan.