Security release by document handing to client

Vibha, When a new banker takes over the existing loan of a borrower, it ensures documents handed over by existing borrower to it.

If the documents comes under the borrowers hand, he is holding them as a trustee to the new banker and he is under an obligation to handover them to it.

Here sbi is not handing over documents to existing banker in the consortium. Say b bank. They r giving to new bank. So for b bank will it amount as security release

Pl repost your query clearly

A nd B bank has given loan to G co in consortium. A is the leader nd holds security doc's on behalf of consortium. Now A share is taken over by C bank and now it will be multiple banking. So B bank is saying that we shall get docs from A bank as we were con consorti partners and not C bank. As going forward it is multiple banking. A Bank is saying that we will give docs to eiyher client or new C bank. as per B bank, if the docs are handed over to client then.it will be technically release of security for us. Thus pls suggest

First , handing over of documents to client i.e. "borrower" , amounts to release of security.

second, A bank is holding documents on behalf of the consortium which consists of A & B banks

Third , A bank has nothing to do with C bank, though C bank is taking the share of A bank

Fourth , Once it is said that it is multiple banking , then , B & C banks shall obtain separate documents as per their individual sanctioned limits.

Fifth , If the query is about release of collateral securities , then , A bank is under obligation to hand over the security documents to B bank , as, the same were held by A bank as a leader of consortium and on behalf of consortium only.

This is with due respect to MALLIKARJUNA SWAMI OF SRISAILAM.

MVSSKS RAMESH,