28 November 2008
Please guide that whether a loan backed by Bank Guarantee should be treated as Secured Loan or as Unsecured Loan. Please mention the Section also
28 November 2008
If the loan is guaranteed by manager's and/or director's of the company it can be classified as secured loans as per the instructions, in accordance with which liabilities should be made out,given in schedule V1.
01 December 2008
Thanks for the reply, but I have a doubt because in this case the charge of the underlying security is not registered with the Co. So how such loan can be treated as Secured Loan. Can a loan be classified as secured in which charge is registered with the Guarantor of the loan. Please refer a book if it is so.
03 December 2008
In present case, loan will be treated as unsecured. Secured loan will be one which has some charge on the Assets of the company, in present case the lender doesn't have any charge on the assets of the company.
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