Re: Outstanding loan amount of Mr. x to be transferred in the name of Mr. y
We acknowledge receipt of your letter No. ………… dated November 13, 2001, received by us on November 21, 2001 on the captioned subject.
Upon perusal of the documents/papers that you have referred to us, it appears that the Bank 1 (the Bank) extended Term Loan facility of Tk. 25.00 lac only in favour of Mr. X to purchase a residential apartment being No. 8 (3rd Floor), measuring 2425 sft. at Plot No. 26, ……….. As security of the said loan facility registered mortgage has been created over the said property in favour of the Bank. The present outstanding of the said loan stands at Tk. 20,48,793.00 along with interest calculated up to 11.11.2001.
Now, Mr. x intends to sell the mortgaged property to Mr. y and accordingly wants to transfer the outstanding Term Loan liability in the name of Mr. y who has agreed to take over the said loan liability vide letter 11.11.2001 addressed to the Bank.
In the premises stated above, you have sought our opinion on the following:
§ What will be the steps for securing the loan liability in the name of Mr. y?
§ How the security will be created?
§ What are the formalities to be observed for creation of charges by Mr. y ?
In order to secure the above loan liability to be transferred to Mr. y, the following procedure needs to be followed:
a) To execute and register a deed of sale in favour of Mr. y by Mr. C. Mr. x.
b) To obtain certified copy of the registered Deed of Sale (to be executed by Mr. C. Mr. x in favour of Mr. y) along with delivery receipt (duly discharged).
c) To redeem/release the registered mortgage created by Mr. C. Mr. x in favour of the Bank by way of executing a deed of redemption and on the same day create fresh registered mortgage over the said property in favour of the Bank by way of registered deed of mortgage to be executed by Mr. y.
d) To obtain usual charge documents from Mr. y.
If you have any further query, please contact the undersigned.
For: “The Lawyers & Jurists”