Page 60 - Compendium of UGC Regulations 1957-2023

Regulations on Establishment, Maintenance and Recognition of Institutions:

INDEMNITY BOND
(Specimen for trust)

The Indemnity Bond made at________________________this_______day of______________
______________________200______________between_______________________________
registered under the ________________________Public Trust Act_______________________
_________________________and bearing registration No. ________________________ dated
___________________by its Board of Trustees consisting of S/Shri (1) (2) (3)_____________
___________________________________herein referred to as the ‘Trust’ (which expression
shall, unless it be repugnant to the context or meaning thereof be deemed to include the said
Trust and the Trustees or Trustee for the time being of the said Trust, the survivors of them and
the heirs and executors, administrators of the last survivor, their or his assigns) of the one part
and the University Grants Commission, a body corporate established and constituted under
the University Grants Commission Act, 1956 (Act III of 1956), herein after referred to as the
‘Commission’ (which expression shall, unless it be repugnant to the context or meaning thereof,
include its successors and assigns) of the other part.
Whereas the Trust as the owner is conducting a college known as ___________________
at___________________herein after referred to as the said College.

And whereas the said College is affiliated to ________________________University constituted
under ________________________act, herein after referred to as the said University:

And whereas the Commission in carrying out its objects and functions has sanctioned grants out
of its funds to the said College.

And whereas in order to regulate and control the use of the grant that may be made by the
Commission to the said College on terms and conditions of the grant, the Commission has
required the Trust to execute this indemnity Bond which the trust has agreed to do.
NOW THIS INDENTURE WITNESSED AND IT IS HEREBY AGREED AND
DECLARED BY AND BETWEEN THE PARTIES AS FOLLOWS:-

1. The Trust hereby guarantees and covenants with the Commission that every amount of grant
that will be given by the Commission to the said College shall when received by the said
College solely be used for the benefit and purposes of the said College in accordance with the
terms and conditions of the grant and not for any other purpose or any other institution run by
the said Trust and in the event of any part of the said grant being found to have been used by
the Trust for any purpose other than the purpose of the said College or for any other institution
run by the Trust, the same shall be refunded by the Trust without demur to the Commission
on demand. The decision of the Commission as to the misuse of the amount of grant and as to
the quantum of the amount payable by the Trust shall be final and binding on the Trust.
2. The Trust further covenants with the Commission that the Trust shall furnish to the
Commission the balance sheet of the Trust every year alongwith the annual audited Accounts
of the said College managed or run by the said Trust. The said balance sheet and the Annual
Account will be sent to the Commission within two weeks from the passing thereof by the
Trust and in any event before the closing of the financial year of the Trust.

3. The Trust hereby agrees to indemnify and keep indemnified the Commission against any loss
that the Commission may suffer on account of the improper or misuse of the grant or any part
thereof made by the said Commission to the said College or on account of non-use of the said
grant for the said college.

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University Grants Commission