Write short notes on Check list for Security Offered on the Term Loan.
CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2020
Write short notes on Check list for Security Offered on the Term Loan.
Answer & Explanation:
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.
Topics: Corporate Finance
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