Multiple choice

Bank B sanctioned a term loan to XYZ, repayable in 28 quarterly instalments. The party did not pay few due instalments and bank wants to file suit. Which of the following is the most appropriate answer?

  1. Bank can file the suit within 3 years for the entire amount.

  2. Bank can file the suit within 3 years for instalments not paid from the due date of respective instalment.

  3. Bank can file the suit within 3 years for instalments not paid from the due date of respective instalment and also the balance amount, if the agreement provides for that.

  4. Bank can file suit for due amount and for the balance amount bank will have to wait.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Any bank can file a suit within 3 years for instalments not paid from due date of respective instalment and also the balance amount, if the agreement provides for that. Thus, option 3 is the correct answer. 

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