Sanjeev Gupta
02 January 2016 at 15:34
A person created registered mortgage in favour of bank as security to credit facilities. However, later on he applied for additional facilities and bank wants to extend charge for additional facilities against already mortgaged property. Please help whether bank can accept additional charge (extension of charge) by way of equitable mortgage or it has to compulsorily obtain simple (registered mortgage). Any judgment if referred on this issue will be of additional help.
Extension of charge by equitable mortgage
A person created registered mortgage in favour of bank as security to credit facilities. However, later on he applied for additional facilities and bank wants to extend charge for additional facilities against already mortgaged property. Please help whether bank can accept additional charge (extension of charge) by way of equitable mortgage or it has to compulsorily obtain simple (registered mortgage). Any judgment if referred on this issue will be of additional help.