Multiple choice

SARFAESI Act is applicable in case of

(a) all securities (b) securities where security interest is created for repayment of the loans (c) all securities except agricultural land (d) all loans except agricultural loans

  1. (a), (b), (c) and (d) a<font size="2">re</font> correct.

  2. (a), (b) and (c) are correct.

  3. (b) and (c) are correct.

  4. (a), (c) and (d) are not correct.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

SARFAESI is effective only for secured loans where bank can enforce the underlying security, e.g. hypothecation, pledge and mortgages. In such cases, court intervention is not necessary, unless the security is invalid or fraudulent. Any security interest created over agricultural land cannot be proceeded. SARFAESI Act is applicable in case of securities where security interest is created for repayment of the loans by any borrower. Thus, option 4 is the answer.  

Keep practicing — related questions