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Meaning of Charge

In any deal, when both parties produce evidence of their determination or feeling that any existing or future property will be available as security for the payment of a debt. And the lender will have the right to make available that property, then the charge is considered to arise on that property.

 

Charges will be considered even if the lender has the right to get his rights enforced in the future instead of today. The charge will be considered even if the lender does not have any whole or specific statutory right over that property or does not have the right to take possession of that property, but he must have the right to provide that security by the order of the court.

 

Charges include lien and equitable charge, whether created by means of a written instrument or by way of depositing or arranging the deposit of title deeds.

 

In short, a charge is an arrangement to make any asset available in security or security for the payment of a debt.

 

Following are the salient features of the charge

 

1. The charge is made on any movable or immovable property of the company.

2. The interest in the property in charge is not transferred.

3. The charge arises due to the actions of the parties and the application of law.

4. The charge can be forever.

5. The area of ​​charge is wide, as it includes the mortgage.

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