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


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.


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

Related Questions & Answers

More Business Law questions and answers in India