AND THE first part agreed to grant the portion of the second part the amount of the loan in question and, instead of that payment, this receipt is gradually executed the agreement between the parties. In the event that the borrower deposits these cheques with the lender, subject to the terms of the loan, a default upon repayment of the loan amount would allow the lender to deposit the cheques for the unpaid amounts and recover them. In the event of insufficient balance in the borrower`s account, the cheque is “bounced” – that is, disgraced, giving the lender the right to act under Section 138 of the Negotiable Instruments Act, under which the dishonour of a cheque is a criminal offence. While the courts have had differing views on this issue and whether it is possible to act in accordance with Section 138 of the Negotiable Instruments Act, recent Supreme Court decisions seem to confirm this. Take a look at this Authority Letter example to collect a check and download this letter of authorization directly! If you need a letter of authorization (proxy) to allow someone you trust to collect a cheque for a certain amount on your behalf, then this letter will be helpful. Or to collect securities in value that represent a certain payment value (bearer shares, cash, gold, etc.) if you are not able to walk yourself. It is an effective way for management to delegate certain tasks to their subordinates, and it also allows them to set certain limits. Two copies of the letter can be printed and signed by the borrower, and one copy may be kept for registration, while the other is given to the lender. The lender`s signature can be obtained on the letter as confirmation of receipt of the letter and cheques. The letter can be sent in person to cheques delivered personally or by mail/mail.
In the witnesses, whose parties to this agreement indicated their respective hands on the date of the month and the year first. I have, [NAME], herely authorized [NAME AUTHORIZED PERSON] to retrieve the cheque with the value of [AMOUNT CURRENCY] on my behalf from your subsidiary, as I cannot currently retrieve the cheque myself. This document can be used by a borrower who must hand out undated postal data cheques or cheques as collateral for a loan repayment to the lender. In this cheque deposit letter, all relevant information can be filled out, such as. B the name of the borrower and lender, the amount of the loan and the cheque numbers, as well as the amounts for which the cheques are submitted. Please download the download authorization letter or copy the following: Please contact me directly if you have any questions, for example about the identity of [NAME AUTHORIZED PERSON] who carries this letter, you can call me at any time at the address [PHONE NR], which is also reflected on my identifiers.