Secured Advance, Creation of Charges - Banking - Lecture Slides, Slides of Banking and Finance

Download Secured Advance, Creation of Charges - Banking - Lecture Slides and more Slides Banking and Finance in PDF only on Docsity! Secured Advance-creation Of Charges • LIEN-SECTION 171 OF THE INDIAN CONTRACT ACT WHICH STATES ‘BANKERS… MAY,IN THE ABSENCE OF A CONTRACT TO THE CONTRARY,RETAIN AS SECURITY FOR A GENERAL BALANCE OF ACCOUNT,ANY GOODS BAILED TO THEM’ CONFERS THE RIGHT OF GENERAL LIEN ON THE BANKERS. • THUS A BANKER IS EMPOWERED TO RETAIN ALL SECURITIES OF THE CUSTOMER IN RESPECT OF BALANCE DUE FROM HIM. • NEGATIVE LIEN- • BANKER DOES NOT GET RIGHT TO RETAIN ANY ASSET OF THE BORROWER. • YHE BORROWER GIVES DECLARATION THAT THE ASSETS ARE FREE FROM ANY CHARGE AND UNDERTAKE TO KEEP IT FREE FROM ANY CHARGE TILL PERMITTED BY THE BANKER. MORTGAGE • BANK TAKES MORTGAGE OF IMMOVABLE PROPERTY TO SECURE THEIR LOANS. • MORTGAGE IS CREATED UNDER TRANFER OF PROPERTY ACT 1882. • SEC 58 DEFINES MORTGAGE AS ‘THE TRANSFER OF AN INTEREST IN SPECIFIC IMMOVABLE PROPERTY FOR THE PURPOSE OF SECURING THE PAYMENT OF MONEY,ADVANCED OR TO BE ADVANCED BY WAY OF LOAN,AN EXISTING OR FUTURE DEBT OR THE PERFORMANCE OF AN ENGAGEMENT WHICH MAY GIVE RISE TO A PECUNIARY LIABILITY.’ MORTGAGE • REGISTERED MORTGAGE-IT IS A LEGAL MORTGAGE CREATED UNDER SEC 59 OF THE TP ACT. • IT INVOLVES REGISTRATION UNDER INDIAN REGISTRATION ACT AND STAMP DUTY UNDER INDIAN STAMP ACT. • EQUITABLE MORTGAGE-THIS IS CREATED BY DEPOSIT OF TITLE DEED BY THE BORROWER IN THE BANK.THIS IS COVERED BY SEC 96 OF TP ACT. ASSIGNMENT • IT MEANS TRANSFER OF A RIGHT,PROPERTY OR A DEBT-EXISTING OR FUTURE. • THE BORROWER CAN ASSIGN ANY OF HIS RIGHTS,PROPERTIES OR DEBT TO SECURE A LOAN. • ASSIGNMENT IS MADE U/S 130 OF THE TP ACT. • IN BANKS COMMOM ASSIGNMENTS ARE BOOK DEBTS,MONEY DUE FROM GOVT.,LIC POLICY.