Charge under the companies act, 2013

Dear Learned Members,

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?

Thanking you in advance.

Replies (3)
It will be advisable to file fresh charge for the new facility.

Agreeing to P C Agrawal Sir, I would like to add Term loan and LC/BC are all together diffrent facilities LC/BC comes under non fund based limits and you have created charge on term loan, you have to create a fresh charge for new facilities being sanctioned.

Thank you for your valuable comments.

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