logo logo

In case of take over loan where the property is transferred by virtue of a general power of attorney whether the bank should insist on execution of a new general power of attorney or the earlier general power of attorney will hold good?

If the borrower is represented through his GPA holder, the bank should insist on the borrower executing a fresh power of attorney in favour of GPA holder or in the alternative the bank may insist on production of a confirmation letter from the borrower stating that the power of attorney already executed in favour of the GPA holder shall still remain valid and hold good and the GPA holder is authorized to execute necessary documents for purposes of take over loans from the bank.