Loan against SGBs permitted as collateral with lien and regulatory loan-to-value limits, subject to lender approval. Sovereign Gold Bonds may be used as collateral security for loans by marking a lien on the Bonds; the loan-to-value ratio applicable to ordinary gold loans under prevailing regulatory practice applies, and granting a loan against SGBs is subject to the discretion of the lending bank or financing agency, not an automatic right of the bondholder.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Loan against SGBs permitted as collateral with lien and regulatory loan-to-value limits, subject to lender approval.
Sovereign Gold Bonds may be used as collateral security for loans by marking a lien on the Bonds; the loan-to-value ratio applicable to ordinary gold loans under prevailing regulatory practice applies, and granting a loan against SGBs is subject to the discretion of the lending bank or financing agency, not an automatic right of the bondholder.
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