Charge Creation & Satisfaction
CHG-1 within thirty days, CHG-4 when it is repaid.
A company that secures a borrowing against its assets must register the charge in CHG-1 within thirty days. An unregistered charge is void against a liquidator and other creditors — which is the lender's problem, and the reason lenders insist on it.
The mirror obligation is often forgotten: when the loan is repaid, CHG-4 must be filed within thirty days. A satisfied charge left on the register shows in every diligence and blocks the next lender.
What is included
- CHG-1 registration of the charge
- CHG-4 satisfaction on repayment
- Register of charges maintained
- Certificate of registration or satisfaction
What we need from you
- The loan or hypothecation agreement
- Board resolution
- Lender's no-dues letter, for satisfaction
- Digital signatures of the company and the lender
Questions
What happens if a charge is not registered?
It is void against the liquidator and other creditors in an insolvency, so the lender ranks as unsecured. The company and its officers are also liable to a penalty, and late registration requires ad valorem additional fees.
Also in MCA & ROC
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Get started with Charge Creation & Satisfaction
Tell us a little about the business and a chartered accountant will call you back. You will get a firm quote before any work begins.
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- A firm quote before any work begins
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