Legal Question in Banking Law in India

Re: Finance

Security which is encashable is primary security eg bonds,equity shares etc.It can also be said to have liquidity.

Re: Finance

Primary Security means any security that can be easily encashed or in other words which is as good as cash payment. Like stock in trade, bonds, Equity Shares Etc.

Re: Finance

It means that any security which is equivalent and as good as cash payments for e.g. equity shares or bonds etc.

Re: Finance

It is not an examination hall.

Re: Finance

It is not an examination hall.

Re: Finance

Primary security as is used by bankers means the asset coming into existence out of the loan. Its present or projected quantum determines the amount of the loan. Thus if a term loan is availed for building factory and installation of machinery, the factory land, building and machinery would be primary security. Thus if a trader avails loan for working capital, the goods he possesses and those coming into existence like raw materials, stock in trade, finished goods with the assistance of the loan would be primary security. Collateral security means an additional security which does not go to decide the quantum of the loan which is taken additionally to strengthen the security cover. In terms of enforceability both are same.