Board Resolution for Loan from Bank
Board Resolution for Loan from Bank
Whenever a company raises loans from the bank, the Board of Directors must execute a Board Resolution for availing the loan and mortgaging any property of the company, if required as per the loan agreement. The following board resolution format can be used for availing loan from the bank by mortgage of fixed assets.
Board Resolution Format for Loan from Bank
WHEREAS a sanction letter dated <Date of Sanction Letter>, from <Bank Name, Branch, Address> was placed on the table approving in principle release of Rs. <Amount of loan availed> to the Company for <Reason for availing loan>.
NOW THEREFORE IT IS RESOLVED that the Board of Directors of the Company be and are hereby authorised to hypothecate along with the items to be purchased from the loan, a property belonging to the Company admeasuring <area of plot>, at <Address> in favour of <Bank Name>, on the terms which are hereby accepted namely, that the loans so advanced by the Bank will be repayable in <Loan Repayment Period> and shall carry a rate of interest of <Rate of Interest> per annum on the outstanding amount.
RESOLVED FURTHER that <Director Name> and <Director Name>, being the Directors of the Company, be and are hereby authorised jointly to execute the necessary documents under the seal of the Company, wherever required, in this connection, as per Article <Number> of the Articles of Association of the company and to do anything and everything that may be necessary in connection therewith.
Board Resolution Format for Term Loan
RESOLVED that pursuant to the authority given by the members of the Company under section 180(1)(c) of the Companies Act, 2013 at the General Meeting held on the <Date of General Meeting>, to the Board of Directors, to borrow, within a limit of Rs. <Amount of Term Loan> from <Bank Name, Branch, Address>, be and is hereby borrowed as a term loan repayable within a period of <Loan repayment period> from the date of disbursement thereof to be covered by the security by way of equitable mortgage by deposit of the title deeds already made with the said Bank.
