Security Homework Help

Security

All term loons are secured. While the assets financed by term loans serve as primary security all the other present and future assets of the company provide collateral/secondary security for the term loan. Generally, all the present as well as the future immovable properties of the borrower constitute a general mortgage/ first equitable mortgage/floating charges for the entire institutional loan including commitment charges, interest, liquidated damages and so on. They are additionally secured by hypothetical of all movable properties subject to prior charge in favor of banks in respect of working capital finance/advance.

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