1. Generally date time and venue of the meeting should be fixed which will be convenient to all participants
2. Sufficient notice should be given before and so that the participants can make suitable travel and other arrangements necessary for attending the meeting
3. The agenda for discussion should be carefully prepared and circulated well in advance so that the participants can come prepared and also come with decisions which they may be able to communicate during the discussion itself to avoid delay
4. The possible duration of the meeting can be indicated depending on the agenda such that the participants come prepared for an extended state necessary and the meetings and the meetings do not get terminated abruptly for want of time, to complete the agenda. The cost and time involved in convening another meeting to discuss the left out items should be borne in mind
5. The meetings should however be held as frequently as possible so that solutions to the problems besetting the account do not get unduly delayed. Meetings at intervals of not more than 2 months will be desirable, particularly in the context of the quarterly information system being in vogue, in terms of the Chore Panel recommendations for regulating the drawings under cash credit account related to the borrowers production plan
6. At least one month prior to the expiry of the credit limits/CAS clearance/ annual review-cum appraisal, a meeting should be held so that CAS clearance is obtained in time and participating banks obtain clearance from their respective Boards/or sanctioning authorities
7. Leader bank is expected to formally and briefly inaugurate the meetings and quickly go through the deliberations of earlier meeting and review the implementation of the decisions taken
8. Leader bank is also expected to moderate the discussions to ensure that all the items in the agenda are discussed and meaningful decisions are taken during the meetings
9. Before the commencement of the meeting, bankers may among themselves briefly discuss the issues often, since it becomes necessary for banks to discuss among themselves in regard to certain sensitive areas. Such a preliminary meeting will enable them to evolve the strategy to be adopted during the meeting with the borrower
10. Every participant should be given reasonable opportunity to be heard and voice his bank's views
11. Both the majority views and the dissenting and minority views should be recorded in the minutes
12. Leader bank and other participating banks should adopt a polite and cool posture even where the borrowers have committed huge default or are guilty of malafide management, diversion of funds, etc. This however, should not prevent them from conveying the firm decisions of the consortium to the borrower
13. Borrower may be given an opportunity to explain their stand and also explain briefly their progress market, production constraints / slackness in demand etc. Proper climate of mutual trust should be created so that the borrower comes out with their demands or furnish informations without any reservation or apprehension. This would help the banks to take proper remedial measures at the appropriate time
14. Decisions taken at the consortium meetings are binding and should be given effect to. Banks should obtain the sanction necessary to give effect to the decisions taken in the meetings from their competent authorities in order that the consortium functions effectively
15. Participating banks, as mentioned earlier, should come prepared for indicating their stand, and also be prepared to decide on behalf of their banks wherever urgently required. Proper representation by a competent official empowered to take on the spot decisions whenever required will be desirable
16. The member participating, in the absence of a firm decision of his bank, should avoid making any binding commitment particularly where the decision involves.
(a) Increasing bank's commitment in respect of borrowing limits.
(b) Reduction in margin / interest etc.
(c) Modification / waiver of certain essential conditions of which only their bank's Board is the competent authority to decide.
(d) Shrinkage or dilution of security directly or collaterally held by the bank for reasons as above
(e) Any other issues which in the opinion of the participant needs clearance by their executive or their Board
17. Consortium meetings need not always be convened only by the Leader bank. It may also be convened at the instance of any of the participating banks or by the borrowers
18. It will be the responsibility of the convening bank and the leader to have all the proceedings duly recorded and the minutes circulated to all the participants atleast within a week after the meeting
19. Before the meeting is to be concluded, the leader or any other participant may quickly summarise the proceedings and decisions taken. Probable date for the next meeting may also be fixed after ascertaining the convenience of all
20. As the preparation and the circulation of the minutes may take some time, each participant is expected to also briefly record the proceedings and prepare his own resume and submit it to the decision making authorities of his bank. This would help in taking quick decisions on certain vital and urgent matters referred in the meeting without having to wait for the minutes of the meeting.
21. It is desirable to prepare adequate copies of the minutes so that participating banks are furnished with necessary copies for use by the branch, Regional Office and Head Office. This will avoid delay in taking copies of the minutes by the participating banks for mailing to their sanctioning authorities.
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Deed of Hypothecation 
