Shridhi Jain (Company Secretary) (1678 Points)
23 February 2011Dear members,
Actually my company renewed the credit limit with bank and with main documents, filed these documents also. I dont knw wat is the need and purpose of the document given below.
Pls explain me the following term and also please tell me the purpose and need for such an agreement:
Omnibus Counter Guarantee
ISDA Master Agreement
CIBIL disclosure of information
Thanks....
Jaideep
(Service)
(1368 Points)
Replied 23 February 2011
Hi Shridhi,
Normally Bankers take CBIL disclosure
Master agreement is standard agreement which will vary from bankers to Bankers. Bankers take this agreement from all of its borrowers. This will consist of general defination, terms and cpnditions and recourse to bankers in case of default.
Omnibus counter Gurantee is required when bankers insist for additional guarantee in addition to security provided. It will come into force when borrower is not able to pay due amount and security provided is not sufficient to settel the loan. In the event of default Bankers will first approach to borrower, if he is not able to make full payment they will invoke guarantee after realizing security.
Regards
Jaideep Pandya
Shridhi Jain
(Company Secretary)
(1678 Points)
Replied 24 February 2011
Thanks Jaideep for your kind reply.
Talking about master agreement, I understood that. But what is ISDA Master Agreement. Whats its purpose and need ?
Jaideep
(Service)
(1368 Points)
Replied 24 February 2011
If you are talking about ISDA... it is reffered as International Swaps and Derivatives Association (ISDA).
ISDA Master Agreement required to enter into derivative transaction.
These are also called as ISDA Master agreement. May be in ur case its different.
Regards
Jaideep Pandya
CAclubindia
