Simple mortgage of property for an overdraft account

Dear Sir/Madam, My father has entered into a simple mortgage of his home against overdraft facility (account held by my husband) with an upper limit of Rs. 10 lac with a co-operative bank to help my husband in his business. Without me or my father's knowledge, the co-operative bank has loaned my husband money more than Rs. 10 lac and has attached other collateral security offered by my husband to the same overdraft account. Now my husband's overdraft account has 3 collateral security attached to it - my father's home, my husband's FDs and my husband's home. On asking, the co-operative bank refused to allow us to settle the 10 lac amount and take back our property papers saying that all the amount due on the overdraft must be settled for the releasing of the paper. My question is 1. Can the bank attach other property to an overdraft account without the knowledge of my father? 2. Do we have the right to come out of the mortgage if we repay the due amount of Rs. 10 lac and is the bank bound to release our property papers?