Legal charge over land, business loan, PIA query

Stephen s

Registered User
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Good morning,

I secured a business loan of 110k with a legal charge over lands belonging to my family, current market value approx 85k.
The company dissolved in 2010 and i have been making small payments where possible with agreement from the bank.
The bank now want to proceed with payment of the full balance.
I have made a few offers of payment monthly with annual lump sums, these were rejected.

I am meeting a PIP next week to see is this an option to enter into a PIA,

The main concern is what can the bank do regarding the land, it is secured as a legal charge over the lands.


Any advice would be really appreciated.
 
I secured a business loan of 110k with a legal charge over lands belonging to my family, current market value approx 85k
I assume that as the lands do not belong to you the loan is also secured by a Letter of Guarantee from you!
Obviously the bank assessed that you offers were insufficient to cover the level of repayments required by them. have they not come back to you with a counter proposal?
PIA is a risk as it can be declined by the bank. There are some amended rules which the PIP can advise you on.
Ultimately if it comes down to the bank instigating recovery proceedings they can call in the loan and guarantee and appoint a receiver to acquire the lands. Hopefully the situation can be resolved before it gets to this!
 
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