Right of lien clause in unsecured loan
vijay
(Querist) 08 January 2015
This query is : Resolved
A friend of mine is a registered money lender, he wants to add the right of lien clause in his unsecured loan agreement so that tomorrow if the client defaults he can demand the payment directly from the clients banker or his HR department, is this possible and what is the clause to be attached in the agreement, your reply will be highly appreciated
B K Raghavendra Rao
(Expert) 08 January 2015
It is advisable that the money lender lend money against equitable mortgage of the property. If the banker has first lien, then the money lender will have second lien. But, no money could be recovered legally unless such a debt is established by trial in a court of law. Hence, a suit for recovery of money need to be filed. It is not as easy as you have mentioned in your query to demand the money from HR department of the employer of the defaulter.
vijay
(Querist) 08 January 2015
Thank you so much for your instant reply, sir is there any clause or format to obtain the second lien if the property is already mortgaged also, if the default it is proven in the court of law then does the complainants advocate need to file a suit of lien or recovery suit again to qualify to settle on the defaulters part.
Thanks.
RAJU O.F.,
(Expert) 10 January 2015
Your friend Registered Money lender can afford services of a lawyer. Let his approach such a lawyer, who will help him to prepare proper agreements. This forum is mainly meant for the layman persons to solve their problems.
H.M.Patnaik
(Expert) 11 January 2015
Very well replied.
T. Kalaiselvan, Advocate
(Expert) 13 January 2015
Repeated query, you may visit the previous thread for more replies to your query.
