21 July 2011
Hello Experts. My query is where can i get standard formats of consortium Bank Documents. Documents executed between various banks appoiinting one Bank as lead BANK lender and a company as mortgagor. i.e. Indenture of English mortgage, Deed of Guarantee, Working Capital Agreement, Deed of hypothecation. Deed of undertaking, declaration.
Are these standards avilable on a particular website or books that i can refer in the above case.
Many persons think that drafting agreements etc., is like a quick fix - do it yourself thing.
But in reality they are not. A host of things would crop up - for instance is there any service being rendered by Consortium bank to the participating banks - and if so what is the nature of service - whether it is taxable service or not -if so who is liable to pay the same etc. etc.
Further more, what would be the relation between the actual borrower, lead bank and the actual bank which is funding. What would happen in case of breach at any stage by any party.
Best thing would be to approach a lawyer and get these documents drafted properly.
22 July 2011
Indian Banks Association had formulated draft consortium documents for financing of consortium loans by various banks. The documents suited for the purpose is being prepared by the Lead Bank and member banks would approve it after discussions of individual banks requirements and a single set of documents are executed binding the borrower and the participating banks. There is no hard and fast rule on drafting of the consortium loans documents; but it would propect the interest of all participating banks.