Ans. The types of documentation depend in the following factors:

1. Legal status of the borrower (Proprietorship, Partnership or Limited company etc.)
2. Type of securities.
3. Type of loan. 14.07.09 reviewed.

1. What do you mean by ‘charge document’ & ‘legal document’ & ‘Other documents’ ?

Ans. Charge Document:Charge documents are generally printed documents provided by the Bank for execution/implementation by the clients. Such as:  

i).  D.P. Note,

ii). Letter of Agreement,

iii). Letter of Continuity,

iv).Letter of Revival.  

Other charge documents:

i). Letter of Hypothecation with Supplementary Agreement.

ii). Letter of Pledge with Supplementary Agreement

iii). Letter of Guarantee,

iv). Letter of Trust Receipt,

v). FDR Lien Letter etc.  

Legal Documents: Legal documents are legal papers provided by the client certifying the legal status of the borrower, their borrowing power, title of goods & property and legal deeds and power of attorney connected with charging of securities. Like as:  

i).  Memorandum & Articles of Association of the company,

ii). Registered Partnership Deed,

iii). Trade License,

iv). Companies Board Resolution & partners resolution to borrow, 

v). All Original property documents including lawyers opinion.

vi). Reg. Power of Attorney to sell the mortgaged property.  

Other Documents: i). Insurance

Policy.

ii). Govt. Security Transfer Form.

iii). Lien on Export L/C (for packing credit)

iv). Duly discharged FDR, Share, Certificates, Govt. Securities etc.

1. What are the use of different types of stamp for different types of loan?

Ans. Judicial Stamp: These are for judicial noting in the court. These are not used for loan documentation.  

Non-Judicial : Deed, Agreement, Undertaking, Power of Attorney etc.   Adhesive: Revenue Stamps & Special Adhesive Stamps (for some documents).   Embossed or imposed: Seal of Notary Public, Organization stamps etc.

1. For which documents ‘Registration’ is necessary & why?

Ans. After obtaining of documents & completing the formalities of stamping, execution, witnessing, the question of registration arises. All documents do not require registration. The following are the cases where registration is necessary to give legal effects the instruments:  

a). The Assignment on the body of an Insurance policy.  

b). A Mortgage Deed.  

c). In case of advance to a limited company, charges are to be registered with the concerned Registrar of Companies.  

d). Power of Attorney to sell immovable mortgaged property.