ABC Pvt Ltd has availed a Term Loan of INR 5 Crores from its Bankers at certain terms and conditions. The company had filed e-form 8 under the old Act for charge creation.
Now the Company has availed a Foreign LC/Buyer Credit of INR 10 Crore. However, the repayment terms, margin, collateral are different from the existing one.
Therefore, would this amount to Modification of the existing charge or a fresh creation of charge?
01 April 2016
If this is a fresh loan then fresh form for creation of new charge will be filed.
However, it is the new limit within the approved loan or limits have been revised, then the existing charge will be modified. In most of the cases Charge need to be modified in the above cases.
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