Multiple choice

If the borrower does not pay within ____________ days after notice by the secured creditor, the creditor can ___________ of the security.

  1. sixty, take possession

  2. seventy, take possession

  3. fifty, take possession

  4. twenty, take possession
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A Correct answer
Explanation

SARFAESI Act, 2002 gives powers of “seize and desist” to banks. Banks can give a notice in writing to the defaulting borrower requiring it to discharge its liabilities within 60 days. If the borrower fails to comply with the notice, the Bank may take recourse to take possession of the security for the loan, sale or lease or assign the right over the security and manage the same or appoint any person to manage the same.

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