Loan agreement
Srinivasan
(Querist) 09 April 2015
This query is : Resolved
Please clarify
In Loan agreement, The lender (Banker) has given the loan to the borrower but Lender has failed to sign the loan agreement. However, he got the sign from Borrower in loan agreement.
Whether the loan agreement is valid or not..
What are the legal consequences of failure of singing by the Lender?
Guest
(Expert) 09 April 2015
Academic query.
However, please clarify why you are interested to know the validity of the loan agreement and the consequences of failure of signing of the agreement by the lender?
Moreover, if you are not the lender banker, as an assistant, what concern you have with the consequences that the bank would face due to failure to sign the agreement?
Srinivasan
(Querist) 09 April 2015
Dear sir... I am an audit assistant.. I have done a branch statutory audit for one of nationalised bank. While auditing I have found said discrepancy.. Banker has not sign the loan agreement..but banker have obtained the sign from borrower and sanction the loan of Rs. 2 crores...
Guest
(Expert) 09 April 2015
Nothing so serious, as you want to present. Don't try to make hill out of a mole. Audit does not mean negative approach, rather to adopt constructive approach to help the management in adopting corrective meansures.
Omission can well be supplied by the bank authorities for compliance of the audit para. Had the signature of the borrower not been obtained that could be taken as serious and that too only on denial of the borrower to sign the agreement.
SAINATH DEVALLA
(Expert) 10 April 2015
U R an audit assistant, but this is a legal forum.Has the borrower been contacted and informed about the lapse or ommission.
RAJU O.F.,
(Expert) 12 April 2015
Agreement signed by the borrower is valid, since banks draft the said loan agreement so as to bind the borrower without the signature of the lender bank.
