Legal Question in Banking Law in India

First exclusive charge would mean that the creditor who had given credit facilites on the basis of the security of the property over which charge is created has a right over the security over and above all other persons. The term paripassu charge is used when a number of banks / financial institutions lend to a borrower and the banks / financial instittutions agree that they shall share the charge on the security property. In such an arrangement the proceeds of the security will be shared between the banks / financial instittutions in proportion to their outstanding liabilites.