Sub mortgage of property
Rupendra Porwal
(Querist) 06 June 2015
This query is : Resolved
Dear Friends,
A consortium loan of 5 cr has been obtained from three bankers namely SBI, UBI and OBC.
SBI is lead banker
Now borrower avails loan of Rs. 25 lakh from SBI and mortgages the property having value of 1 cr. Mortgage is registered and title deed is ALSO deposited with SBI.
This loan of 25 lakh has been obtained outside of consortium.
NOW BORROWERS WANTS TO CREATE SECOND MORTGAGE BY DEPOSIT OF TITLE DEED IN FAVOUR OF THE CONSORTIUM.
ALL DOCUMENTS INCLUDING TITLE DEED RELATING TO CONSORTIUM ALWAYS REMAINS WITH LEAD BANKER.
QUERY:
CAN EQUITABLE SUB MORTGAGE BE CARRIED OUT IN FAVOUR OF THE CONSORTIUM?
PLEASE SUGGEST SPECIFIC LEGAL POSITION.
Rupendra Porwal
Advocate
Lucknow
malipeddi jaggarao
(Expert) 07 June 2015
The second loan obtained outside consortium is for the same business purpose or for some other purpose? Whether consortium has given consent for such additional sanction? Why borrowers want to create second charge in favour of consortium banks on the property given for the second to individual bank? Whether consortium banks are insisting for this? Many aspects are to be seen carefully and every stage the consortium banks should agree for such proposals.
As regards creating second charge, it is possible if the consortium banks allow it in their meeting duly recording the minutes.
Rajendra K Goyal
(Expert) 07 June 2015
Well advised, agree with the expert malipeddi jaggarao.
malipeddi jaggarao
(Expert) 08 June 2015
Thanks to Shri Rajendra Goyal for confirming my advice.
