Professional Documents
Culture Documents
06 B Securities and Charges (Table)
06 B Securities and Charges (Table)
Sr
Movable Property
1. Stock of raw materials,
semi & fully finished goods
(Goods that can not be spared
& are needed continuously for
production or trading)
Hypothecation charge
Type of loan/borrower
Manufacturer or Trader
Charge of Pledge
Ownership with borrower , Possession with Bank (Lock & key), Bank
can give reasonable notice (say 15 days) in case of default & sell the
goods to recover debt.,
Borrower liable for shortfall after sale & if surplus is there will be given
to him by the bank
Hypothecation Charge
Agreement is signed to cover all receivables present or future and
outstanding any time.
Charge is registered with Registrar of Companies so that any one can
inspect and find out previous charges of other creditors.
Type of loan/borrower
Mfr, trader/service provider
4. Single claim on
Receivable/Debtor/LIC
policy /UTI /supply bills
drawn on government
department
Assignment of debt
Notice to debtor (e.g. LIC) of assignment is given
Written consent of debtor is obtained
In case of default, bank can claim from debtor of borrower directly
5. Financial instruments:
Stocks /shares /Bonds/Fixed
Deposits Receipt /Kisan Vikas
Patras,Govt.Bonds/Debentures
Of Companies.
Lien
- is a right to retain goods as security for payment of debt.
- Bankers lien is general lien & tentamounts to implied pledge.
- Bank can sell security after giving notice to borrower on default.
Type of loan/borrower
Manufacturers/ traders who have to sell
goods on credit and draw bills on
buyers and get the bills discouanted
with their banker.
Mortgage
Definition
:transfer of an interest in a specific immovable property for the purpose
of securing the money advanced or to be advanced or an existing or a
future debt or for performance of an engagement which may give rise to
a pecuniary liability
- Bankers deal with two types(without possession)
Legal mortgage
A mortgage deed is prepared mentioning all terms and conditions.
The deed requires registration & stamping with registrar of assurances
(Tehsildar)
Equitable mortgage
Only original documents of title to property are deposited with bank at
notified town for this purpose with an intention to create charge for a
loan. No registration is required, hence confidentiality of transaction is
maintained. No charges/expenses . It is very convenient & quick.
Type of loan/borrower
All companies to secure their loans as
primary or collateral security. , Home
loans borrowers, guarantors who offer
house or other property as security