• Personal guarantee

I have given personal guarantee for a loan Taken by my cousin.For this loan he has given a few of his properties as collateral and I also have given a property as collateral.My question is am I free to deal with my other properties which are not secured to the bank?If yes then till when can I deal with those properties?Can I gift or sell those properties if the account becomes NPA also without attracting the provisions of fraudulent conveyance?
Asked 9 months ago in Property Law from Nagpur, Maharashtra
Religion: Hindu

Yes you are free to deal with property which are not given in security of the loan with bank. You can gift sale even account is NPA your liability is till the collateral given. 

Shubham Jhajharia
Advocate, Ahmedabad
19370 Answers
76 Consultations

5.0 on 5.0

You are at liberty to deal with other properties which are not given as collateral 

 

2) once account become NPA avoid dealing with these properties 

Ajay Sethi
Advocate, Mumbai
66998 Answers
4045 Consultations

5.0 on 5.0

1) Yes, you are free gift or sell your property.

Ganesh Kadam
Advocate, Pune
7502 Answers
65 Consultations

4.9 on 5.0

You are free to deal with all properties, regardless. However, in respect of the secured property, the Bank would have a lien on the same, as the same is used as a security, by way of mortgage/hypothecation. In case of dealing in such secured property, the purchaser must be informed of such mortgage and hypothecation, and suitable Indemnity Bond may be issued thereof to make good the loss, if any to the interested purchaser of such secured propoerty.

Rohith Kamath
Advocate, Bengaluru
6 Answers

Not rated

Dear client, 

Properties which are not mortgage under guarantee, no issue. Can be sold and gifted.

No act of fraud.

Yogendra Singh Rajawat
Advocate, Jaipur
13251 Answers
18 Consultations

4.6 on 5.0

You can transfer or dispose the properties which have not been given as collateral security towards personal guarantee for the loan availed by your cousin.

T Kalaiselvan
Advocate, Vellore
56740 Answers
705 Consultations

5.0 on 5.0

There's no problem with regard to unsecured properties in this connection.

Have they issued any notice with regard to unsecured properties, if not then don't worry about it since they were not offered as collateral security, you can challenge their claim if any properly.

 

T Kalaiselvan
Advocate, Vellore
56740 Answers
705 Consultations

5.0 on 5.0

See the unsecured properties of guarantor cannot be attachéd he can be made liable till extent of secured properties.

Shubham Jhajharia
Advocate, Ahmedabad
19370 Answers
76 Consultations

5.0 on 5.0

1) bank can take legal proceedings to set aside transfer of property after account was declared as NPA 

Ajay Sethi
Advocate, Mumbai
66998 Answers
4045 Consultations

5.0 on 5.0

1)You can't sell an asset pledged as collateral. 

2)You can sell other properties. 

Mohammed Mujeeb
Advocate, Hyderabad
10261 Answers
3 Consultations

4.5 on 5.0

Dear Sir,

You being a guarantor and your liability is limited to the extent of property which is secured with bank.  In fact the bankers cannot declare your personal account as NPA when principal debtor fail to discharge his liabilities.  You are free to deal with your other properties without any hesitation.  Please go ahead.

Netravathi Kalaskar
Advocate, Bengaluru
3178 Answers
14 Consultations

5.0 on 5.0

yes you can till the said bank doesn't take any injunction order against you for the said properties if loan defaulted.

Prashant Nayak
Advocate, Mumbai
12939 Answers
23 Consultations

4.6 on 5.0

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