Banking Law
17 Jan 2010, 16:15
]A nationalised bank entered into a OTS scheme with a defaulter. The defaulter did not pay the bank as per the OTS scheme . My question is whether the Banker can ask for the entire loan amount because of the default committed
1 Reply
The Banker is entitled to call upon the recalcitrant borrower to pay the entire amount, if while entering into the OTS, the Parties have agreed to go back to ‘square one’ position, in case of breach & default in the OTS terms. It depends on the terms & conditions of the OTS, which actually has amended and modified the original facility/loan agreements etc.