85 
’]. Letter of hypothecation. 
No. I. Single Copy only of this Form required. 
To the ! - ) 
Bank, London, 
L* herewith beg to hand you, duly endorsed, Bills of Lading (complete 
sei) and Insurance Policy of 
shipped by per. to 
and representing as per annexed invoice an actual value of £ , 
against which have, this day, drawn on you S» 
at months’ date. 
In consideration of your accepting such draft as an advance to against 
the above shipment, the goods and the proceeds thereof are to be treated as 
specially hypothecated to you by way of collateral security for the due payment 
of your acceptance, and of any other liabilities ofto you, the understanding 
and agreement between us, in regard thereto, being as follows: 
The shipment is to be consigned to ££ friends, Messrs. 
of to whom 
you will please forvard Bill of Fading and Invoice, giving them such Orders 
as to the storage, insurance against fire, and sale of the goods as 
you may coiisider necessary for your protection, and they are to 
remit the full Net Proceeds arising from such sale, to you to the credit 
of^Jaccount, under their guarantee, and in such manner as you may direct. 
Sho'uld your acceptance, or part of it, remain uncovered at maturity, 
we hereby engage to place you two days at least before due date, in funds to 
meet the same, and at all times to lceep you out of cash advances in respect 
thereof; but provided you are so first placed in funds, it is understood between 
us that, if desired by "• you will, in case the remittances should not then have 
come forward, grant jf* one renewal at three months’ date of your acceptance, 
either for the total amount of the same, or for such part thereof as W T . may have 
been called upon to supply, and we engage duly to place you, two days before 
maturity of your renewed acceptance, in funds to meet the same. 
The remittances, after having been accepted by the drawees in l.ondon, 
arc to be placed to JJ* credit under discount at the current rates of the day, and 
the proceeds are to be held by you as a provision for the payment of your 
acceptance, as also as further collateral security for any other liabilities of to 
you.' Any ultimate surplus is to be at " y disposal, and in the event of any decrease 
occurring, during the currency of the advance, in the value of the goods hypo 
thecated, so as to bring the net value below the amount of your acceptance, we 
engage to cover you in cash for the difference. 
We are to pay you at time of dräwing a Commission of J per 
cent. on Three Months’ acceptances; 1 per cent. on Six Months’ ac- 
ceptances, and I per cent. on any Renewal of Three Months; and in 
the event of your coming at any time contrary to the agreement between us, 
under cash advances, you are to be entitled to Charge interest thereon, from time 
to time, at One per cent. above the current Bank of England rate of the day, 
but never less than Five per cent. per annum, and you are also to be entitled to 
make all usual and proper charges for postages, telegrams, and other expenses. 
In case the Net Proceeds of the goods „° r a any amount which in case of 
loss or damage of the goods you may have received from the Lnderwriters, 
should be insufficient to cover the principal, interest, Commission and charges as 
aforesaid, undertake to pay the deficiency to you, in London, on demand, and 
T also agree that your account current shall be admitted as sufficient proof of 
the amount thus payable to you by 
Yours faithfully,