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Primary Security:
Clean. Assignment of receivables
and recording of power of
attorney with the lessee is a
must. There could be a situation
where the applicant is already
having borrowing arrangements
with another bank and current
assets are already charged. In
such cases, it will be necessary
for his bank to cede exclusive
first charge on the rent
receivables in our favour.
Collateral Security:
i)
Ist charge on building
against the rentals of which the
loan would be sanctioned (value
of the property should be double
the amount of loan) or any other
acceptable property of equal
value.
ii)
In case of partnership
firm, personal guarantee of the
partners of the building. In
case of company personal,
guarantee of directors would
be obtained.
iii)
In the case of Public
Ltd. Companies, if the directors
are not willing to extend
personal guarantee and the
collateral security in the form
of equitable mortgage is
sufficient, the stipulation of
personal guarantee of directors
may be waived by the sanctioning
authority.
iv)
In cases where our Bank
is the tenant and the loan
amount does not exceed
`.25
lacs, stipulation of equitable
mortgage may be waived subject
to the condition that the lease
deed should not expire during
the currency of the loan.
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