Charge Documention for loan

7/24/2019 Charge Documention for loan

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Documentation Compliance Certificate (Checklist).

Md. Najir Hossain

Faculty MemberBIBM


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Classification of charge:

Fixed charge :

Floating charge :

ari !assu charge

"econd charge :


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#he common method of charging securities#he common method of charging securities

$. ledge

%. Hy!othecation

&. Mortgage

'. (ien

). *ssignment

+. "et,off


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-ocumentation:

-ocument:

-ocument means any ritten record hich ser/es as an e/idence in

res!ect of a transaction.

-ocumentation:

0-ocumentation is the execution of documents in right form 1 laful

manner . -ocumentation forms a !ermanent record of the rights

res!onsibilities and obligations of the executants that the borroers

and guarantors toards the lender 2Ban34.


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Im!ortance of document:

-ocumentation does establish a legal relationshi!

beteen the lending ban3er and the borroer

-ocumentation assume the character of !rimary

e/idence in any dis!ute beteen the !arties of loans

and ad/ances

-ocumentation comes to the rescue of the ban3s in

the court of la


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reconditionsreconditions for documentation

Nature of *d/ance and !ur!ose

Nature of Borroer

Nature of "ecurity and Mode of Charging

Charge re5uiring registered or not Charge documents to be stam!ed or not6

If stam!ed amount and ty!es of stam!.

"!ecial Conditions for document as !er sanction

ad/ice Ca!acity of 7xecutants and signing Ca!acity


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"te!s in/ol/ed in documentation:

$. -rafting of documents

%. Filling of documents of !rinted nature

&. 7xecution of documents

'. "tam!ing 1 Chec3ing of im!ersonation etc.

). 8btaining additional !a!ers6 if necessary li3e affida/its6 certificates6 underta3ing and

declaration etc.

+. 9egistration

. ;itnessing


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Execution of documents:

Com!etency:

a.* !arty com!etent to ma3e a contract must execute

the documents.

b.* minor6 lunatic or insol/ent shall not ha/e the

ca!acity to execute the documents.

c.* Com!any6 in execution of documents does not

o/er ste! the !oer gi/en in memorandum. In this

case6 a co!y of resolution !assed by the Board of

-irectors of the com!any must be obtained and

carefully it should be examined.


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Execution of documents:

0 Witnessing:

"ome of the documents com!ulsorily re5uired to be

itnessed such as mortgage deed6 gift deed6 ;ill etc.

*t least to itnesses are re5uired for itnessing

!ur!ose.

0 Registration:

*ll documents need not re5uire registration6 but certaindocuments such as Mortgage -eed6 9egistered oer

of *ttorney etc. re5uire registration.


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"tam!ing

0 #here are four ty!es of stam!s

$4 ?udicial stam!

%4 Non,judicial stam!&4 *dhesi/e stam! @ "!ecial *dhesi/e "tam! 1

'4 Im!ressed@7mbossed stam!


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;hen documents are not acce!ted by the courts.

;hen documents are 3e!t blan3 or incom!lete6

;hen documents are unstam!ed or under stam!ed6

;hen documents are not registered6 hich are re5uired

to be registered6

;hen documents are attested6 hich do not re5uire

attested6

;hen documents are not attested6 hich re5uirecom!ulsory attestation6 and

;hen documents are barred by limitation.


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Chec3list of -ocumentChec3list of -ocument

Sl.No Description

!eneral Documents

" (etter of Borroer re5uesting for ne facilities@9eneal@*!!risal.

# (etter of *uthority 2In case of artnershi!4

$ 9esolution 2In case of (#- Com!any4

% (ist of artners 2In case of artnershi!4

& (ist of -irectors 2In case of (imited Com!any4 Certified by9egistrar of ?oint "toc3 Com!any 29?"C4

' (etter of artnershi! 2In case of artnershi!4 -ead ofartnershi!.

Certificate of Incor!oration 2In case of (#- Com!any4

#he Memorandum of *ssociation 2In case of (#- Com!any4


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* rticles of ssociation (+n case of ,-D Compan)

"/ (etter of *cce!tance

"" ersonal Auarantee of all directors 2In case of (#- Com!any4

"# #rade (icence

0 Charge Documents

" -emand romissory Note

# (etter of Continuity 2In case of Continues *d/ance4

$ (etter of *rrangements

% (etter of -isbursements 2In case of (oan4

C ,ien

" (etter of (ien

D 1ledge of Deposits 2 S. 1atra" Fixed -e!osit 9ecei!t 2duly discharged by the oner4

# "anchaya atra@Bonds , duly discharged by the oner of thede!osits stands in the name of third !arty.

$ (etter of Auarantee by de!ositors

% (etter of *uthority for encashment


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Chec3list of -ocumentChec3list of -ocument 1ledge of Shares

" "hare Certificates duly discharged.# Memorandum of -e!osit of "hares

$ Irre/ocable letter of authority for collection of di/idends bonus etc.

% Ban3 #ransfer forms for each shares Certificates 2Form,$$4

& (etter of Auarantee 2In case of #hird !arty share4.

' Notice of ledge by the shareholder for the relati/e Com!anies.

1ledge of +n3entor

" (etter of ledge.

# (etter of disclaimer 2If third arty godon4.

$ Insurance !olicy ith ban3s clause% "toc3 9e!ort

& (etter of *uthority for engaging godon staff and also for ayment ofsalary etc.


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4pothecation of +n3entor.

" (etter of Hy!othecation of Machinery 1 75ui!ment @ "toc3.

# (ist of Machinery.

$ Insurance olicy.

5ortgage" 8riginal title deed

# C."6 ".*@9" arches 2Mutation !arches certified by *sstt.Commissioner of (and4

$ -u!licate carbon 9ecei!t 2-.C.94

% (etter of No objection 2In case of lease Hold !ro!erty4.

& !to date 9ent recei!t @ #ax recei!t.

' Building@Factory !lan ith letter of a!!ro/al. =aluation certificate.

(etter of No objection of lesser for mortgagor to mortgage2For leasehold !ro!erty4.

* !to date Munici!al holding #ax recei!t for !ro!erty inmunici!alities.


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"/ 5emorandum of deposit of title deeds (6or e7uita8le

mortgage) along 9ith irre3oca8le po9er of attorne.

"" 9?"C "earch re!ort 2For limited Com!any@registered!artnershi!.

"# Mortgage deed and registration recei!t endorsed by mortgagor2For legal@ 9egistered mortgage4 along ith !oer of attorney.

"$ 9?"C Form D=III and recei!t of filing ith 9?"C it !ro!erty in thename of (#- Com!any 1 9?"C Form DID and recei!t filing ith9?"C.

"% Income #ax clearance certificate as re5uired for registration.

"& Non encumbrance certificate"' (etter of !ersonal Auarantee 2In case of third !arty !ro!erties.

" hotogra!hs of the Mortgagor.


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Chec3list of -ocumentChec3list of -ocument !uarantee

" (etter of Auarantee 2If Auarantee issued against Counter guarantee4.

# (etter of Counter Auarantee.

$ Net orth statements 2N.;."4 for indi/iduals@Auarantors.

-erm ,oan

" #erm (oan agreement beteen borroer and Ban3 2#erm (oanagreement a!!ro/ed by H@8.

Sndication

" *cce!ted Mandate (etter.

# *cce!ted #erm "heet.

$ Information Memorandum.

% artici!ation (etters.

& Facilities *greement.

' oer of *ttorney of artici!ants

*cce!ted fee (etter.

(egal o!inion.

* Head of Credit ris3 Management and legal Counsel a!!ro/al ofdocuments.


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8ther necessary documents.

Department ;nit Name Date Signature

d3ance

d3ance +n charge

5anager d3. (Corp.=" 2 #


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#han3 Eou#han3 Eou

Charge Documention for loan

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