Legal Question in Banking Law in India
Mortgage of HUF property by Karta for guaranteeing the loan of a third person
Can the HUF property be given as security by Karta for securing the loan given by bank to a third party i.e. can HUF property be given as a third party guarantee
3 Answers from Attorneys
Re: Mortgage of HUF property by Karta for guaranteeing the loan of a third person
The consent of the coparceners are required by the Karta in this case. Otherwise such security given by the Karta is not valid if the security extends to the shares of the coparceners. But the Karta can offer his share as security against a loan taken by a non-member of HUF.
Re: Mortgage of HUF property by Karta for guaranteeing the loan of a third person
No, it cannot be, unless it can be shown that the transaction is in the interest and for benefit of HUF.
Re: Mortgage of HUF property by Karta for guaranteeing the loan of a third person
Yes with consent of other coparcenors
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