charge on assets
This query is : Resolved
05 August 2008
1 what is charge over assets?
2 assets here means only Fixed assets only or debtor and stock also?
3 what is first charge and second charge ?
4 If assets is of Rs.1000
Does it means 1st charge on cash credit account of Rs. 300
2nd charge can be created of Rs. 200 ?
Does it mean that way or Some other way???
2 assets here means only Fixed assets only or debtor and stock also?
3 what is first charge and second charge ?
4 If assets is of Rs.1000
Does it means 1st charge on cash credit account of Rs. 300
2nd charge can be created of Rs. 200 ?
Does it mean that way or Some other way???
S.Srinivasaraghavan
(Expert)
18 October 2008
1. Charge nothing but an encumberance created by a creditor over an asset the liquidation of which will give him a priority to settlement of his dues.
2.It can be on all assets.
3.First charge is priority no.1 and second charge is priority no. 2 as to settlement of dues to creditors in that order on liquidation of asset.
4. Yes.
2.It can be on all assets.
3.First charge is priority no.1 and second charge is priority no. 2 as to settlement of dues to creditors in that order on liquidation of asset.
4. Yes.
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