Re: Legal Opinion regarding transfer of liability from one account (deceased) to another account
We refer to your letter No. …………….. dated 01.08.2002 (received on 03.08.2002) on the above subject. We have perused the contents of your letter.
Out of the two proposals, the second one i.e. to open a new account in the name of the son, Mr. X in which SOD liability of Late Mr. y will be transferred against the same pledged shares which is lying with the Bank is preferable.
However, to give effect to this second proposal the Bank needs to obtain the following documents:
- A letter from Mr. X expressing his desire to take over the liability of his late father by opening a new account.
- A letter from the wife expressing her desire to keep her shares as continuous security.
- Executing a tripartite agreement between the Bank on the one hand and Mr. x and his mother on the other hand.
- Obtaining fresh charge documents including fresh letter of pledge from the wife of the deceased.
If you have any query, please do not hesitate to contact the undersigned.
For: “The Lawyers & Jurists”