Abstract

The case is meant for discussing the topic of Mortgages in the course on Credit Management. It details the predicament in which the bank manager and other officials of a mid-sized bank find themselves after the bank was duped by some unscrupulous elements.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Procedures to be followed while obtaining Legal opinion
• Significance of obtaining Non Encumbrance Certificate
• Understanding the different types of mortgages and the relevant safeguards
• Precautions to be taken while accepting Immovable property as security
• and Importance of search to be made in the books of Registrar’s Office (vi) Significance of pre-sanction inspection of property and residence of parties to the advance.

Keywords

Mortgage, Credit, credit limit, letter of credit, bank guarantee, legal opinion, funds flow analysis, clean drawings, irregular drawings statement