Two Accounts become NPA having same property as security.
1 year ago
Suppose there are two loans taken Loan A and Loan B (by two different firms on different accounts) on same property kept as security for both loans. If now both accounts become NPA then as part of SARFESHI Act which Loan will be settled first by selling off the property.
A.Dear Client
When two banks or organizations sanction loans on the same property then both the bank will have an agreement called pari passu charges which means the lead bank will have the first say on the security
When two banks or organizations sanction loans on the same property then both the bank will have an agreement called pari passu charges which means the lead bank will have the first say on the security
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