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Saturday, 1 December 2012

Letter Of Loan Facility

Mrs.M.D Perera
Nawala road
Colombo 07

Dear Madam,


We refer to your recent request for a term Loan facility, and are pleased to offer same in the following terms and conditions.

Term Loan facility

Purpose       : To meet sons educational expenses and for the permanent working capital requirement of  
                      the business

Amount       : Rs.750,000.00

Interest         : @ 17% per annum payable monthly and subject to fluctuations without prior notice and at
                    the discretion of the bank

Repayment   : In 60 Equal monthly capital installment of rs 12,500/= plus interest

Establishment Fee : Rs.500.00


  1. Fixed primary Mortgage Bond No. 2007 dated 19/10/2012 for Rs.750,000.00 executed over the land marked Lot 4 depicted in plan No.1256 dated 06/07/1693 drawn by Mr.C.C Ranathunga land called situated at Nawala road,Colombo 07 owned by Mrs.M.D Perera in extent of 36.36 perches.
     2. General terms & Conditions relating to terms Loan Facility of Rs.750,000.00 dated 19/10/2012

General Conditions:

01. You will not create any further mortgage or pledge over any immovable asset upon which the bank
       has an interest without the prior written consent of the Bank

02. You will preserve and maintain the immovable property mortgaged to the Bank in a good state of
      repair. Any material alterations in its condition or value will have to be notified to the Bank.

03. These facilities will be available to you only after perfection of the security documents. All the legal
      and other charges incurred in the execution of the security document s will be for your accounts.

04. In addition to the above stated terms and conditions, this facility will also be subject to all the clauses,
      terms and conditions stipulated on the other contractual document already executed by you in the

05. In the event of nonpayment of the monthly installment of term loan on the due date, a higher rate of
      interest will be applied on such installments in arrears.

In accordance with our normal practice, monthly loan installments (which includes Capital Plus Interest) and taxes thereon will be debited to your account on the 36th day each month. We shall therefore be grateful if your will ensure that account has sufficient funds to meet theses payment on the due date.

If these terms and conditions are acceptable, we shall pleased if you will sign and return to us the duplicate copy of this letter.

We thank you for the business you direct to us and look forward for a long and mutually satisfactory relationship.

Yours faithfully,
Lak Bank Ceylon PLC


I have perused and understood the contents of the above letter and I agree to accept the facility under the terms and conditions aforementioned.


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