Legal Question in Business Law in India

Can a property which is already mortgaged as a collateral security in one account, can it be taken as primary security now in another account.


Asked on 10/25/14, 3:40 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

25.10.2014

Dear Sir / Madam,

Generally, banks do not accept a property as security if it has already been pledged. However, if the value of the property largely exceeds the value of the facility where it has been pledged as a collateral security, the bank may as an exception consider the excess value of the property as a primary pledge in another account.

Regards,

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Answered on 10/25/14, 3:56 am


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