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Credit facilities
extended against registered mortgage of property (i.e, land/buildings constructed
or to be constructed) is by nature classified as a Secured Advance. A formal charge
on the property is established and recorded with the Registrar Land and Property
termed as registered mortgage. Advances are also made against equitable mortgage
of property, whereby the original title Deeds, are deposited with the Bank as Security
and the charge is registered with the Registrar SECP.
In case the Finance is allowed to Limited Companies, where the original title documents
of Land/Building and other Fixed Assets are held by the senior charge holders, our
charge (Pari-Pasu or ranking) as approved by Credit Committee, shall be recorded
with the Registrar Securities & Exchange Commission of Pakistan (SECP). However,
in case of Pari-Pasu Charge, NOCs from the senior Charge Holders shall be obtained
before registration of charge with SECP. In case of borrower’s failure to liquidate
the obligation, or on classification of the advance to “Non-Performing” the Bank
has a legal recourse to apply for a decree in a court of law, to sell off the mortgaged
property through auction as ordered by the court.
POLICY:
Facilities are disbursed or allowed to be availed by the customers only on receipt
of a formal DAC issued by RCAD & duly signed by CAD Head.
CAD shall issue DAC only when charge Documents & Securities as spelled out in
the Sanction Advice have been received and lodged in the safe vault, however in
rare cases DAC shall be issued where some of the secondary nature documents are
not received for acceptable reasons and that the deferment is approved for a specified
period by the level of the authority as given below:
- Formal approval for deferment of specified documents from Credit Committee shall
be necessary, in terms of Credit Policy.
- DAC issued where receipt of some of the documents is deferred shall clearly highlight
the deferment approval and the period of deferment. Extension in the deferment period,
if required further shall require appropriate level of credit approval.
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