The Manager/Officer should ascertain that –
1. The branch has obtained a proper set of documents prescribed by the Bank like mortgage deed (incase where plant and machinery are embedded in the earth) / pledge or hypothecation agreement.
1. The branch has obtained a proper set of documents prescribed by the Bank like mortgage deed (incase where plant and machinery are embedded in the earth) / pledge or hypothecation agreement.
2. The plant and machinery have been acquired by making direct payment to the suppliers alongwith stipulated margin and invoices/receipts are held on record. Adequate insurance cover with bank’s clause is obtained and held on record.
3. That valuation report from a approved valuer is held on record.
4. That the charge in favour of the Bank has been registered with the Registrar of Companies in case of advances to limited companies and search report is held on record.
5. That periodical physical verification reports of branch officials are held on record.
6. That machinery acquired on Hire Purchase is excluded.
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