If a debtor's registered place of business is changing from one state to another, how does it effect a secured creditor? What are the objections or precautions can a secured creditor raise?
surabhi (manager) (49 Points)
22 May 2011If a debtor's registered place of business is changing from one state to another, how does it effect a secured creditor? What are the objections or precautions can a secured creditor raise?
CS Bijoy
(Expert)
(6394 Points)
Replied 23 May 2011
Secured creditor means the creditor whose money is secured on security of asset, so just by changing place of business of the debtor secured creditor will not be affected. But in case of insolvency of the debtor and the asset is not covering the full amount of secured creditor after paying the government dues, than creditor will be affected. In case of default by the debtor the creditor has the right to sale the aset and recover the money landed.
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