16.1 Charge Registration
This topic describes about the Charge Registration stage in Collateral Perfection process.
In this stage, the Credit Officer or the user authorized to edit the Charge Registration task must capture the registration details about the banks charge on collateral.
The creation of charges over the assets of customer helps banks know the customer's other lenders and the assets pledge to the lenders. Thus, double financing can be avoided.
To secure the funds lent to the customer, banks use a number of legal documents like loan agreements, hypothecation agreements, mortgage deeds, etc., to lay out the terms of the loan and ensure repayment with interest as per schedule.
Once a charge is created, the customer must register those charges with the Registrar of Companies, along with the mentioned documents, that create a charge over the company.
- Collateral Summary
- Collateral Type (For Example: Property)
- Comments