Which of these are correct for hypothecation as per SARFAESI Act?
(a) It is a charge on movable assets.
(b) It is in favour of secured creditor.
(c) It is without the delivery of possession.
(d) It gives right to the creditor to sell the assets.
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Only (b), (c) and (d)
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Only (a), (b) and (c)
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Only (a), (b) and (d)
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All of the above
B
Correct answer
Explanation
"Hypothecation" means a charge in or upon any movable property, existing or future, created by a borrower in favour of a secured creditor without delivery of possession of the movable property to such creditor, as a security for financial assistance and includes floating charge and crystallisation of such charge into fixed charge on movable property.