CHARGE OVER SECURITIES :

Charging a security means that the borrower gives the lending bank a right to:

(i) transfer the title from the borrower to the bank

(ii) take possession of the securities

(iii) recover the dues through legal course

Creation of charge on securities is done as per the nature of the security as under:

1. Hypothecation (for movable stocks such as, goods, plant and machinery)

2. Pledge (for movable stocks)

3. Mortgage (in respect of immovable property)

4. Assignment of debts (life like insurance policy/book debts)

5. Lien on deposits with the bank