Can a bank call back a commercial property loan with 2 months installment overdue?

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asked on Nov 21, 2018 at 20:58
edited on Dec 12, 2018 at 00:27
I have a cash flow problem with slow repayment from payer. However, I manage to maintain my bank installment within 1-2 months overdue. I am not blacklisted. New business model is working and sales is improving, just the payer pay slow in small tranches. So, in reality, I am facing tremendous pressure to chase payment for bank installments.

I meet a problem as mentioned in the title, details as below:-

I have a commercial property loan with "Bank A" which installment due date is end of every month. So, an unpaid installment of 30 June 2018 and 31 July 2018 is considered 2 months overdue. So, on 2 September 2018, I was barred from paying 1 month installment (using ATM machines) because it is considered exceeding 3 months overdue. I was told the account is blocked, and all cash deposited in ATM machines will be rejected. I have to make full settlement (3 months installment) in cash deposit counter. Yet, the counter personnel had to call the collection department for cash deposit approval before they accept the cash payment. I manage to settle this to avoid "legal action" threaten by the collection department.

Today, 21 November 2018, I receive a call from "Bank A" collection department with another round of threaten saying ...
(i) 30 September 2018 and 31 Oct 2018 installment are overdue;
(ii) my commercial property account is now blocked for cash deposit via ATM machines;
(iii) because this account has been blocked before, therefore, they impose new regulation that maximum overdue period is 45 days only;
(iv) so, I am given 5 days to settle full overdue amount in order to avoid the loan to be "call back";
(vii) lawyer letter is ready to be send our after 5 days of grace period to execute the "call back" action;

I have a few questions to ask all guru here :-

(i) For both borrower and bank, what are the law, BNM guidelines or contract terms need to follow in this collection process?
(ii) Can "Bank A" simply change the "new regulation" against us at his/her will?
(iii) Full settlement is the best solution, but this month I am only able to maintain 2 months overdue.
What can I do?

Please enlighten me, thanks to all guru here.
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4 Answers

answered on Nov 21, 2018 at 22:22
edited Dec 12, 2018 at 00:28
Do read the terms and conditions of your loan with this bank.

The bank reserves the right to recall any loans given to you even when not in default mode. Example, you have defaulted other loans of other banks.
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answered on Nov 22, 2018 at 12:24
edited Dec 12, 2018 at 00:32

Thanks for your suggestion. I have questions as below:

1. What will be the actions taken by the bank / lawyer firm in subsequent stage?
2. What option(s) I have?
3. I am able to maintain 1 - 2 months overdue at this moment. I can regularize installment after February 2019. Can I negotiate with them for this? Which option bank prefers.. to confiscate property or regularize installment?

Thank you.
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answered on Nov 22, 2018 at 14:48
edited Dec 12, 2018 at 00:33
Which option bank prefers.. to confiscate property or regularize installment?
Bank will prefer to recall the whole loan and make you a bankrupt. This is because they can accumulate high penalty interest for almost 6 years before bankrupting you. More profitable this way.
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answered on Nov 22, 2018 at 15:24
edited Dec 12, 2018 at 00:39
Regularize your payment.

Every month you are in default mode and high penalty charges are in place. One day you can be drained by default charges alone.
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