Multiple choice

Are existing or future receivables property?

  1. Yes

  2. No

  3. Yes, but if and when charged to the lender

  4. No, if hypothecated to the lender
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A Correct answer
Explanation

The expression “property” is defined in various laws in India, the latest being Section 2(1)(t) of the SARFAESI Act which defines property as: 

(i) immovable property (ii) movable property (iii) any debt or any right to receive payment of money whether secured or unsecured (iv) receivables, whether existing or future (v) intangible assets, being know-how, patent, copyright, trade mark, licence, franchise or any other business or commercial right of similar nature.

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