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Security creation – what kinds of security is typically required to be created over assets by lenders? (Pramit Mohanty, Senior Associate, Trilegal)

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Security creation – what kinds of security is typically required to be created over assets by lenders?

Loan and financing transactions require businessmen to create security over assets, so that in case of failure to repay the security can be enforced and the bank can recover the amount due. What kind of security is typically created over assets? Does this depend on the type of loans? What is the ranking of security over a particular asset vis-à-vis other assets and lenders? Corporate lawyers and business advisors can add significant value while creating finance strategy, during negotiations or while drafting legal documents if they understand these concepts clearly. Watch a short trailer that explains market practices and typical terms that are used while creating security over different kinds of assets from Pramit Mohanty, Senior Associate at Trilegal.


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