Property and Trust Law

Section 5 provides for the acquisition of rights or interests in financial assets of any bank or financial institution by SCO/RCO, notwithstanding any thing contrary contained in any agreement or any other law for the time being in force, in either of the following manner: Issuing a debenture or bond or any other security in the nature of debenture, as consideration agreed upon by a SCO/RCO and bank/financial institution, incorporating therein the terms and conditions of issue. Entering into an agreement with bank/financial institution for the transfer of such financial assets on such terms and conditions as may be agreed upon.

Under sale of immovable secured assets, the authorised officer shall serve to the borrower a notice of 30 days for sale of the immovable secured assets.

Manager shall have power by notice in writing to recover any money from any person who has acquired any of the secured assets from the borrower, which is due or may become due to the borrower.

When sale of secured asset is made, the appropriation of sale proceeds realised are required to be made. Firstly, towards costs, charges and expenses incidental towards preservation and protection of securities, insurance premiums etc. that are recoverable from the borrower. Secondly, towards the due of the secured creditors. Thirdly, if there is any surplus, it will be paid to the person entitled thereto in accordance with the right and interests.

The doctrine of election is based on the principle of equity. The conditions necessary for application of this doctrine are as follows (1) The transferor must not be the owner of the property which he transfers (2) The transferor must transfer the property of the other owner to a third person (3) The transferor must at the same time grant some property in the same instrument, out of his own, to the owner of the property (4) The two transfers (transfer of the property of owner to the transferee and conferment of benefit on the owner of property) must be made in the same transaction (5) The question of election does not arise if the two transfers are made by virtue of two separate instruments (6) The owner must have proprietary interest in the property, a creditor is not put to election as he has only a personal right to be paid by the debtor  (7) The owner takes no benefit under a transaction directly, but diverts a benefit under it indirectly, is not put to election (8) Question of election does not arise when benefit is given to a person in a different capacity

It is the correct answer. The amount paid by a deceased partner is called legacy.

The account should be opened in the name of the individual with the addition of the words "executor or administrator". Thus, if 'X' has been appointed as an executor, then the addition of executor will be added. Thus, option 3 is the correct answer. 

Section 171 in The Indian Contract Act, 1872 General lien of bankers, factors, wharfingers, attorneys and policy-brokers — Bankers, factors, wharfingers, attorneys of a High Court and policy-brokers may, in the absence of a contract to the contrary, retain as a security for a general balance of account, any goods bailed to them; but no other person has a right to retain, as a security for such balance, goods bailed to them, unless there is an express contract to that effect.

The execution of the 'will' will be carried by the executor. The executor can also inherit under the will.

Sec 378 of IPC states that whoever intending to take moveable property dishonestly without consent is said to commit theft.

Usufructuary mortgage is where the mortgagor delivers possession of the mortgaged property to the mortgagee, and authorises him to retain such possession until payment of the mortgage-money and to receive the rents and profits accruing from the property. In such mortgage, there is no personal liability of the mortgager.

A mortgage in which the lender is secured by taking possession of all the original title documents of the property that serves as security for the mortgage, gives the mortgagee the right to foreclose on the property, sell it, or appoint a receiver in case of nonpayment and it can be at any place.

A mortgage deed is a document in which the mortgagor transfers an interest in real estate to a mortgagee for the purpose of providing a mortgage loan. The mortgage deed is the evidence of the interest transferred to the mortgage holder. An assignee can sue in his own name if he had complied with the Act (Policies of Assurance Act, 1867) and had obtained on assignment either by endorsement on the policy or by separate instrument. The borrower may pledge the documents of title with the bank and, on the other hand, mange to obtain the delivery of goods on the basis of indemnity bond or some other device. Debentures are generally freely transferable by the debenture holder. Debenture holders have no rights to vote in the company's general meetings of shareholders. Thus, (b) is not correct. 

Securitization is the process of pooling various types of debt - mortgages, car loans, or credit card debt, for example - and packaging that debt as bonds, pass-through securities, or collateralized mortgage obligations (CMOs), which are sold to investors. In a securitization transaction, all the given documents, but (e), are required. Thus, (1) is the correct answer.

If any person contravenes or attempts to contravene or abets the contravention of the provisions of this Act or of any rules made thereunder, he shall be punishable with imprisonment for a term which may extend to one year, or with fine, or with both.