questions & opinions
KNOWLEDGE BANK FROM B KANAGA SABAPATHY
LET KNOWLEDGE SPREAD
“Questions and Opinions – 13/08/2024”.
Question :
A property has been offered as collateral security. On inspection, it was found that it is a place of worship (temple) of a community. How to go about in this situation?
Opinion:
The valuation for collateral security purpose is to estimate the value of the property on a forced sale if the borrower becomes a defaulter at any point of time. Auctioning religious places or certain educational institutions and attaching them for non-payment is not practically possible. The security cannot be enforced. The bank may be suitably advised accordingly.
With best wishes,
B. KANAGA SABAPATHY
[email protected]
www.bkanagasabapathy.com
