Certification of Charges -straight / pari passu on bank term loan

If the bank is changing the terms and conditions of the loan, it may require an amendment to the charge registered on the MCA Portal.

 Even if the overall charge amount already covers the loan amount, the changes in terms and conditions may impact the security interest or the rights of the bank.

You should review the original charge registration and the amended terms and conditions to determine if any changes are needed.

Consider consulting a legal or financial expert to ensure compliance with the Companies Act and relevant regulations.

Some possible scenarios where amendment of charges might be required: - .

Change in loan amount or interest rate - Modification of repayment terms - Addition or removal of security - Change in the borrower's or lender's details

To amend the charge registration on the MCA Portal, you'll need to file Form CHG-1 (Notice of alteration or modification of charge) and attach the amended charge document. Additionally,

you may need to obtain the bank's consent or approval for the changes. 

Changes to charge terms need registration:

• Sec 79: any modification in the terms or conditions or extent or operation of a registered charge must be registered within 30 days of the modification, in Form CHG-1 (or CHG-9 for debentures), with the modification agreement.

• Changing from exclusive to pari passu, changes in the amount secured, interest rate changes, or adding or releasing securities are modifications.

• The bank (charge-holder) and the company sign. File within 30 days. Beyond that, up to 60 days with additional fee. Then, condonation under Sec 87 (CHG-8).

• A fresh certificate of modification is issued by the ROC.

The key test is whether the revised terms change the particulars of the registered charge—not merely whether the total secured amount remains within the existing registered limit. If the change affects the security, assets charged, nature or extent of the charge, or other particulars recorded with the Registrar, the company should generally file a modification of charge (Form CHG-1) within the applicable statutory period. A change limited to repayment or other loan terms, with no change to the registered charge particulars, may not by itself require an MCA charge modification; check the executed amendment and the existing charge filing.

A registered amount that already covers the loan does not, on its own, settle the question. Compare the revised facility and security documents with the charge instrument and MCA records, and confirm the filing requirement and deadline for the specific change.

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