Documentation

PRESENTED BY:
MD. ABDUL JABBAR
MANAGING DIRECTOR
AVIVA FINANCE LTD
 What is documentation?
Documentation is a term with many meanings, the most common of
which are:

• A set of documents provided on paper, or online, or on digital or

analog media, such as audio tape or CDs.

• The process of providing evidence.

• The execution of documents in proper form and according to the

requirement of the law is known as documentation.

• Documentation forms a permanent record of the right and liabilities inter

alias the parties, the bank, the client (borrower) and the guarantor, if any.
The Importance of Documentation

• There’s an old adage, ‘If it isn’t written, it doesn’t exist.’

• Documentation indicates what we see, hear or smell and identifies what

happened, which does not include assumptions, guesses or explanations as to
why something happened.

• It’s a written evidence of transaction.

• It helps to identity the borrower, co- borrowers and guarantors, security and the
nature of charge created.

• It is acceptable as evidence in the court of law.

• It is treated as primary evidence in case of any dispute among the parties

concerned.
 

Types Of Documentation in Banking

1. Charge Documents
2. Mortgage Documents
Charge Documents
 Charge documents means the documents through which
charge is created It is a record of the right and liabilities
inter alias the parties, the bank, the client (borrower) and
the guarantor, if any.
 In General, the following papers and documents (charge
and other documents) are required to be obtained/
maintained irrespective of type of borrower/client,
loan/investment and security to get legal remedy:
Charge Documents

 Credit/Investment Approach in Business Pad of the

Borrower/investment client

 Credit/Investment Application in prescribed format duly

filled in

 Liability Statement of the borrower/client

 List of the Directors/owners of the company/Firm

Charge Documents

 Demand Promissory Note (single, joint & several)

 Letter of Revival/DP Note Delivery Letter

 Letter of Authority

 Letter of Disbursement

 Letter issued to the borrower/client for recovery of loan

Charge Documents
 Letter of Agreement (Mode wise)

 Purchase Schedule for Bai Modes (Murabaha, Muajjal, Salam etc.)

 Letter of Guarantee

 Account opening Form (AoF) duly filled in

 Trade License

 Memorandum & Articles of Association, if the client is a company (Certified

by RJSC)

 Partnership Deed, in case of partnership firm.

Mortgage Documents

A legal document by which the owner of the

property (borrower) transfers his interest in specific
immoveable property to the lender to secure the
repayment of an existing or future debt, or the
performance of an engagement which may give rise
to a pecuniary liability (TP Act-1882, Section 58).
List of required Documents/Papers

 Original Title Deed of the property

 Certified copy of Purchase Deed along with Deed -Delivery

receipt duly endorsed (In absence of original Title Deed)

 Registered Partition Deed among the Co-owners (if required)

 Mortgage Deed duly Registered along with Registration Receipt

duly discharged

 Registered IGPA favoring Bank to sale the property

 Bia Deeds of the mortgaged property

List of required Documents/Papers
 Mutation Khatian alongwith DCR

 Record of Rights i.e. CS, SA, RS, B.S. and Mohanagar Jorip parcha (if within

Mohannagar Area)

 Affidavit to be sworn by the owner of the property before 1st class Magistrate that

he has valid title in the property and not encumbered otherwise

 Up-to-date Rent Receipt

 Up-to-date Municipal Tax Payment Receipt (if property within Municipal Area)

 Up-to-date Union Parishad Tax Payment Receipt (if property within UP)
List of required Documents/Papers
 Mutation Khatian alongwith DCR

 Record of Rights i.e. CS, SA, RS, B.S. and Mohanagar Jorip parcha (if within

Mohannagar Area)

 Affidavit to be sworn by the owner of the property before 1st class Magistrate that

he has valid title in the property and not encumbered otherwise

 Up-to-date Rent Receipt

 Up-to-date Municipal Tax Payment Receipt (if property within Municipal Area)

 Up-to-date Union Parishad Tax Payment Receipt (if property within UP)
List of required Documents/Papers

 Board Resolution of the Mortgagor company duly supported by the provision of

Memorandum & Article of Association (when one company Mortgage for the loan of other

company)

 Photograph of the Mortgaged Property

 Location Map

 Survey Report from professional Surveyors

 Physical Visit Report by Bank Officials

 Lawyer’s opinion in respect of acceptability of the property as collateral security

 Lawyer’s satisfaction certificate regarding genuineness of title of mortgage formalities.