Multiple choice

Provisions of the SARFAESI Act are applicable to which of the following?

  1. Pledged goods

  2. Only mortgaged properties

  3. Securities that are not otherwise charged to the creditors

  4. NPA loans with outstanding above Rs. 1 lakh

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The provisions of SARFAESI Act are applicable only for NPA loans with outstanding above Rs. 1 lakh. Non-performing assets should be backed by securities charged to the Bank by way of hypothecation or mortgage or assignment. Security interest by way of lien, pledge, hire purchase and lease (not liable for attachment under Section 60 of CPC) are not covered under this Act

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