Query

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2015 Dear Sir :

We are an Automobile Car dealership of a leading brand, For purchase of our Car stock we have got an INF (Inventory Funding facility) from a financier (say X) & cars brought from the manufacturer are through the financier. (thus all are stock in trade cars are hypothecated to The Financier,X). Now, we are using our Stock in trade cars for Demo purpose & thus getting another loan from a financier. Now, do we have to file a charge against the 2nd loan also (as for the 1st INF facility, Charge has been created on my whole stock value)

kindly help

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2015 Thanks for your reply.
We are getting another loan from a same financier.One thing i want to know that demo car are getting registered with Public Vehicle Department are treated as assets and cars which are not registered are treated as stock, so is there any connection with creation of Charge and registration of car because charge is created on assets.