Legal Question in Banking Law in India

Pari-Passu

Hi,

Please explain me the exact meaning of pari passu.For eg if some one says that:

''X'' bank to have first pari passu charge on fixed assets along with ''Y'' bank and ''Z'' bank .

What does the above sentence indicate.Is there anything as First pari passu?

Please explain.

Regards

Jaishankar


Asked on 9/12/04, 12:39 pm

3 Answers from Attorneys
G B SABARI DAS R.SUBRAHMANYAM & ASSOCIATES

Re: Pari-Passu

Pari Passu (with equal steps) means on equal footing or proportionately. Equally, without preference example a serious of debentures may be issued subject to the condition that they are to rank pari passu as first charge on the property charged by the debenture. There is no first pari passu or second pari passu as stated above pari passu means equally.

Read more
Answered on 9/14/04, 12:35 am
G B SABARI DAS R.SUBRAHMANYAM & ASSOCIATES

Re: Pari-Passu

Pari Passu (with equal steps) means on equal footing or proportionately. Equally, without preference example a series of debentures may be issued subject to the condition that they are to rank pari passu as first charge on the property charged by the debenture. There is no first pari passu or second pari passu, as stated above pari passu means equally.

Read more
Answered on 9/14/04, 12:36 am
Vivek Anand M/S.VIVEK ASSOCIATES

Re: Pari-Passu

Pari Passu is a term used in banking transactions which means that the charge to be created is in continuation of an earlier charge which might be held by the same institution or by an other institution.

Read more
Answered on 9/13/04, 4:30 am


Related Questions & Answers

More Banking Law questions and answers in India