Legal Question in Banking Law in India
A customer has a proprietorship firm and he has cash credit account in a bank. Now he has converted his firm into partnership firm. Can he avail the cash credit facility in the same account or he has to open a new account.
Asked on 12/19/15, 10:52 am
1 Answer from Attorneys
Fca Prashant Chavan
Expert Edge LLP
20.12.2015
Dear Sir / Madam,
The concerned Bank has to take a call on the procedure whether to first close the present cash credit A/c (CC) or whether to permit continuation of the same cash credit A/c despite a change in the constitution of the business enterprise.
Regards,
Answered on 12/19/15, 5:49 pm
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