Questions & Answers
Can the bank deposit my security cheque if I fail to pay 3 loan installments?
Hello,
I am 3 months behind on my bank loan with FGB. I have told them that I can pay up 2 months on THURSDAY 2nd Nov 2017. The loan is in my business name and they are threatening to deposit the security cheque of 330,000 Dhs for the outstanding full balance of 250,000 Dhs.
Can they do that? Is that even legal?
If the borrower failed to pay 3 consecutive installments or 6 nonconsecutive installments of the monthly installments without the approval of the bank, then ALL the installments, interests and any other fees and expenses become DUE AND PAYABLE IMMEDIATELY without any notification or any court ruling.
The bank may in all likelihood pursue a legal case (criminal and then civil) against the Company and the signatory for default as well by depositing your security cheque which you provided at the time of availing the loans.
