Ownership of Collateral Security if given to bank
14-Oct-2023 (In Property Law)
If a collateral security is given to some bank on behalf of someone, does the ownership of that property remains in the hand of the original owner or the one on behalf of whom he's given the security?
The question is very much dependent on the nature of the mortgage executed and if any document executed between original owner and the person on whose behalf security is given. However when collateral security is given to some bank on behalf of someone the ownership of property remains with original owner subject to mortgage.
Dear Sir,Madam,
The Ownership remains with the original owner, only in case of a default the mortgagee( Bank) is allowed to proceed in law and seek appropriate reliefs against the collateral security of the Mortgagor( the one who keeps the collateral) .
The Ownership remains with the original owner, only in case of a default the mortgagee( Bank) is allowed to proceed in law and seek appropriate reliefs against the collateral security of the Mortgagor( the one who keeps the collateral) .
Ownership of that property is with the lender bank only. The original owner is conditional owner after satisfying all due amount he will get possession & ownership of that property. Collateral security have no relation with ownership.
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