Specimen of a Loan Bond Form

UK LIFE INSURANCE CORPORATION LONDON

LOAN BOND

I/We, the Borrowers mentioned in the schedule here of having this day received from the UK Life Insurance Corporation (hereinafter referred to as Corporation) as advance by way of loan of the sum as stated in the said schedule against the security of the policy described in the said schedule which has been deposited by me/us with the said Corporation DO HEREBY for self/selves and my/our respective heirs, executors and administrators covenant and agree with the said Corporation, their successors and assigns as follows:

1. That the said Policy shall be held by the said Corporation, their successors and assigns as security for the payment of the said advance and of inters thereon as hereinafter mentioned and of all expenses which may be incurred in connection therewith, and that without prejudice to the prior charge in favour of the said Corporation in respect of the advance already granted by the said Corporation on the security of the said Policy and still subsisting as mentioned in the Schedule which is hereby confirmed.

2. That the said advance shall not be repaid within a period of six months from the date on which the loan is settled.

3. To pay interest to the said Corporation, their successors and assigns at the office mentioned in the said schedule at the rate of 6 per cent per year compounding half yearly on the said advance, the first payment of interest to be made on the date specified in the said schedule.

4. When called upon to make repayment at the said office of the said advance with all interest which may be due thereon being given 3 months' notice to that effect,

5. That the Corporation, their successors and assigns shall not be bound to accept the repayment of the said advance unless tendered in full.

6. That in the event of failure to repay the said advance when required as aforesaid or to pay interest in terms of these presents on the dates hereinbefore mentioned or within a calendar month after each

due date respectively the said Policy shall be held, without the necessary of any notice being given, to be forfeited to the said Corporation, their successors

and assigns, and the Corporation shall be entitled to apply the Surrender Value allowable in respect for the said Policy in terms of their Regulations and Conditions in payment of the said advance, interest and expenses, the balance, if any, of such Surrender Value to be accounted for the party, entitled thereto.

7. That in case the Policy shall mature or become a claim by death, when the amount of the said advance or any portion thereof shall remain outstanding, the Corporation shall be entitled to deduct such amount together with all the interest up to the date of maturity or of death, as the case may be, from the policy money, and the balance Only shall become due and payable under policy.

8. This document shall in all respects be deemed to have bee made and completed at (London). AND as security for the said interest an expenses DO HEREBY assign to the said. Corporation their successors and assigns the said policy and the sum or the sums to become due under the same, either on surrender or otherwise.

DECLARATION

I/We hereby declare that I/we have not served on a office of the UK Life Insurance Corporation any notice assignment or reassignment in respect of the above policy except those of any already registered by this Life Insurance Corporations of insurer who issued the above Policy nor shall we serve in UK or any office of the said Corporation any notice of assignment or reassignment before payment of the loan Value, Surrender Value.

Signature of the Assured……………………

Signature of the Assignee(s)..............................

Date………………………..