How do you use pari passu in a sentence?

What is pari passu charge with example?

An example of pari-passu occurs during bankruptcy proceedings: When the court reaches a verdict, the court regards all creditors equally, and the trustee will repay them the same fractional amount as other creditors and at the same time.

Is pari passu in English word?

adverb, Latin. with equal pace or progress; side by side. without partiality; equably; fairly.

What is pari passu event?

Pari-passu—Latin for “equal footing”—is a financing arrangement that gives multiple lenders equal claim to the assets used to secure a loan. If the borrower is unable to fulfil the payment terms, the assets can be sold, and each lender receives an equal share of the proceeds at the same time.

What is ceding of pari passu charge?

“Pari Passu” charge means that when borrower company goes into dissolution, the assets over which the charge has been created will be distributed in proportion to the creditors’ (lenders) respective holdings.

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How do I create a pari passu charge?

This type of charge created through common documents on behalf of multiple banks is called Pari-Passu charge. Law requires such charges on assets of the company to be registered at ROC within 30 days from the date of creation of charge or such extended time permitted by the ROC.

What does ipso facto means?

Legal Definition of ipso facto

: by that very fact or act : as an inevitable result drove the getaway car and was ipso facto an accessory. History and Etymology for ipso facto. New Latin, literally, by the fact itself.

What do you mean by inter alia?

phrase. You use inter alia, meaning ‘among other things’, when you want to say that there are other things involved apart from the one you are mentioning. [formal]

What is pari passu ranking?

Pari passu is a Latin phrase that literally means “with an equal step” or “on equal footing”. It is sometimes translated as “ranking equally”, “hand-in-hand”, “with equal force”, or “moving together”, and by extension, “fairly”, “without partiality”.

What is pari passu in home loan?

As a common form of security, a bank insists on mortgage of the house for which the loan is being availed of by the borrower. … The bank has the first right on the property for which they provide a loan. In case of more than one lender, a pari passu charge is created in favour of all the lenders.

What is the effect of pari passu clause in the repayment of debentures?

With the presence of a pari passu clause, a debenture holder is assured of getting the repayment on pro rata basis between denture holders in case of insufficient funds or assets of the company.

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What is NOC for pari passu?

h. No Objection Certificate (NOC)/Pari Passu letters for ceding charge on current assets and movable fixed assets to be obtained from all existing lenders and to be submitted within 60 days of disbursement; i.

What is the period of limitation for a banking debt?

For filing Civil Suit, the limitation period is 12 years for all including Co-Operative Banks, 2. For filing cases before DRT, the limitation is 3 years from the date of acknowledgement of debt. The limitation period is 3 years starting from the last due date or last payment of default or the completion of loan period.

What is the difference between pari passu charge and exclusive charge?

a) PariPassu charge – Under this, the charge is shared by more than one lender in the ratio of their outstanding amount. The prior consent of the existing charge holder(s) is required by the company. b) Exclusive charge – The security under the exclusive charge is provided to a particular lender only.