Dear all
My querry is that a company which has taken term loan from ICICI Bank Ltd by mortgaging some of its assets and the same bank has created charge on that particular assets of the company but now the company wants to borrow more loan from Yes Bank by mortgaging the same assets whether the company is required to take NOC from the ICICI Bank Ltd for mortgaging the same assets with the Yes Bank.
If Yes then what will be the response/feedback of ICICI Bank Ltd
Hello,
Instead of NOC, verify whether the charge created by the ICICI Bank is First Charge or not? If it is First Charge, the company can created second charge over the same asset in favor of Yes Bank. In such cases, you have to go through the sanction letter of ICICI Bank wherein terms and conditions pursuant to the Charge must be mentioned.
You can ask from ICICI bank for NOC. ICICI after comparing the value of the mortgaged property with its loan amount, if think feasible then may grant NOC for providing the same property as security to Yes bank.
The property should be sufficient to pay off the loan taken from both banks together.
dear love,
You can go for the consortium finance as well in which two charge can be created on the same property but you have to take the permission from ICICI bank. It is must.
Please correct me if i'm wrong.
Thanks in advance
CAclubindia
