Legal Question in Banking Law in India

Re: Asset Securitisation & Reconstruction Company in India

The original owner is entitled to receive accounts of sale proceeds of his property and may be entitled to receive the amount, if any, realized by sale of his property over and above his liability.

Re: Asset Securitisation & Reconstruction Company in India

Once the asset is sold to an ARC it is without recourse. The profit that an ARC makes on sale/realisation of the acquired assets is available for distribution amongst the security receipt holders. The Original owner is not entitled to anything at all as it/he has parted away with its/his assets to ARC unconditionally

Re: Asset Securitisation & Reconstruction Company in India

In an earlier answer I mistook the term original owner as the entity which sold the debt to ARCIL. If the owner of the physical assets is the debtor who has created the security interest, ARC has to pay off the surplus after realisation of the assigned debt (in entirety and not the acquisition cost) with interest and costs to the debtor/owner of the physical assets which have been sold in enforcement of security interest. Please substitute this answer to the earlier one.

Re: Asset Securitisation & Reconstruction Company in India

Yea the original owner entitled the excess amount.