Document background
The Notice of Intent to Foreclose Lien is a critical document in India's secured lending ecosystem, required before a lender can proceed with foreclosure actions. This notice becomes necessary when a borrower defaults on their obligations under a loan or security agreement, and the lender intends to exercise their rights over the secured property. The document must comply with various Indian legislations, including the Transfer of Property Act, 1882, and the SARFAESI Act, 2002, as well as relevant state laws. It typically includes detailed information about the default, the amount due, the property in question, and the timeline for remedy. The notice serves multiple purposes: it fulfills legal requirements, provides the borrower with a final opportunity to cure the default, and establishes a paper trail for potential legal proceedings. The document must be carefully drafted to ensure enforceability and should include all statutorily required information to withstand legal scrutiny.
