Creation of second charge on immovable assets

Legal

Originally posted by : narendra.s.p

If you desire to obtain 2nd Equitable Mortgage charge where the first charge by way of Equitable mortgage is with another Bank or Financial Institution, then, the requirement would be to make or constitute the first charge holder as your agent enabling the borrower to deposit or redeposit the title deeds with him for creation of second equitable mortgage. This can be done by simple letter addressed by the first charge holder to the second charge holder agreeing to act as the agent of second charge holder to accept deposit/redeposit of title deeds from the borrower on behalf of the second charge holder also. The mortgage confirmation letter of the borrower should clearly state the fact of deposit/redeposit of his documents of title with the first charge holder as security for the loan availed by the borrower from the second charge holder. Suitable recital should be recorded in the mortgage register of the 1st charge holder and copy duly certified by the first charge holder should be sent to the second charge holder. In the letter accepting agency by the 1st charge holder, the first charge holder should agree to accept deposit of the documents of title of the Borrower as the agent of second charge holder till the borrower discharges the liability of the second charge holder or till second charge holder permits in writing, release of the title deeds to the borrower.

Absolutely Practical procedure .

 
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Legal

Originally posted by : ritesh goyal


Filing of Charge forms related to company law by both the borrower and also the guarantor offering its property as mortgage





I appreciate your reply, and with due respect, I want to explain my previous post.

If X bank sanctioned some facility to Y company for first charge in X Bank favour on  Y’s immovable property and after creation of charge  some Z company request for another facility from the X Bank, and Y ready and willing to offer mortgage his immovable properly in the form of Second Charge.

In this connection what documents / amendment are required to protect the banks interest.



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thanks in advance.

 

 
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