Write short notes on Check list for Security Offered on the Term Loan.

Checklist for security offered on the Term Loan Verify the following as regards security offered on the term loan, and subsequent acquisition of Assets: Assets acquired pursuant to the loan agreement are in line with the terms of the sanction; Assets purchased from the money advanced/to be advanced, if not brought upon/fixed to the factory premises, have been hypothecated with the bank(s)/ financial institution(s)/commercial bank; The company has not entered into any arrangement with the creditors, nor has any act or default been committed, as would render the company liable to be taken into liquidation; Where guarantees have been furnished, in the event of death of a guarantor, his heirs have not given notice of revocation; and In the opinion of the assessors/valuers appointed by the company the value of the security has not become insufficient or depreciated beyond norms prescribed in the indenture.