A.Primary Security :
- Where the fixed assets (i.e. immovable properties including
machinery) of the company are mortgaged with a bank and / or other
financial institution(s) by deposit of Title Deeds as continuing
Collateral Security towards the crop loan availed, the applicant
company should obtain the consent of the concerned bank/financial
institution to cede Pari Passu charge /Second Equitable Mortgage as the
case may be in favour of the SPTF.
- A tripartite or all party agreement containing the stipulation as
mentioned in the loan agreement for the scheme should be executed. The
said tripartite agreement shall be executed by the bank and / or other
financial institution(s), SPTF and the Loanee Company simultaneously
immediately after the execution or creation of mortgage in favour of
SPTF of the said fixed assets.
- Where title to the property is free of any encumbrances, a direct
mortgage in favour of the SPTF should be created and the Title Deeds
should be deposited with SPTF.
- When the borrower is a State Corporation and / Public Sector
Undertaking, a continuing guarantee in favour of SPTF [for the total
loan period or until liquidation of entire debt ] from the concerned
State Government should be furnished towards the security for the loan
to be advanced by SPTF.
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