when a bank gives loan to a company against a security.
1)who is the person on whose favour charge is created?
2)who is a charge holder?
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Charge
Replies (2)
Dear Priyank
Whenever a bank gives a loan to any company against primary security and collateral security a charge is requirered to be created on the assets being given as security under both the companies act 1956(Form 8) and Companies Act 2013(Form CHG 1).Chargeholder is the person in whose favour charge is created i.e person who has given the loan in your case it is the Bank who has advanced a loan and for securing a loan and enabling the Bank to have 1st right on assets charge is created on the assets mortgaged and for having a better knowledge about it u should download the form CHG1 from MCA website and prepare and file the same on your own
Bank is the charge holders in case bank has given the loan and the charge is to be created in favour of bank only.
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