SIR, PLZ ADVICE WHETHER THE CREDIT FACILITY SHALL BE TREATED AS SECURED OR UNSECURED IN BANK BALANCE SHEET IF MARGIN REQUIREMENT IS BREACHED,
CREDIT FACILITY IS 500 LACS, SECURITY MARGIN IS 25% I.E SECURITY (P+C) REQUIRED 625 LACS AND SECURITY FAIR VALUATION AS ON LATEST BS DATE COMES TO 600 LACS, THEN WHETHER CREDIT FACILITY OF 500 LACS SHALL BE SHOWN UNDER SECURED OR UNSECURED OR PROPORTIONATELY?
If margin requirement is breached bank can take legal action as per terms and condition, like notice, sale of security etc
but if credit facility amount is still fully covered in available security it will be treated as fully secured. this question has been asked in RTP in passed, we have covered it in our lectures