JAIIB LEGAL VERY IMPORTANT 1
1. Charged created by Bailment of goods to secure payment of a debt is called: Pledge
2. Guarantee is defined in: Indian Contract Act
3. If on a letter of credit it is not mentioned whether it is revocable or irrevocable, then as UCPDC 600,
it will be treated as : Irrevocable LC
4. A director of a bank wants to raise loan of Rs 10 lakh from his bank against Life Insurance Policy
with surrender value of more than Rs 15 lakh. What will be done?: Bank can sanction.
5. In which of the following cases, the document is required to be attested by two witnesses?: (a)
Pledge (b) Hypothecation (c) Mortgage (d) Lien
6. A document was executed by three partners in different dates. When shall the limitation period
start?: The limitation period will start from the last date i.e. when the document was executed by the
last partner.
7. Loan to a company engaged in construction of projects, which method of financing is to be used:
Cash Budget method.
8. What is the meaning of Group in Exposure Norms: Commonality ofmanagement
9. The procedure used for ascertaining Customers Creditworth is called: CreditRating
10. Green field project is related to : setting up new projects
11. What is Real Rate of Interest?: Prevailing interest rate minus inflation rate
12. Themain distinction between Hypothecation and Pledge is on accountof : Possession
13. In Letter Of Credit jmporter is called: Opener of Letter of Credit
14. Cash Budgetmethod is used for sanctioningworking capital limits to : Seasonal Industries
15. Bank's charge over LIC Policy is created by: Assignment
16. Guarantee issued by a bankwhich is still outstanding is shown in the Balance Sheet as: Contingent Liability.
17. Why loan against Partly Paid Shares are not preferred by banks?: Because partly paid shares represent
contingent liability. In case companymakes demand and the borrower does not pay the amount then the bank will
have to pay the amount otherwise share may be forfeited.Moreover it is prohibited by RBI
18. Return on Investment is calculated to ascertain of the unit.: Profitability
19. For ascertaining that a firm will be able to generate sufficient profit to repay instalments of term
loan, which ratio is computed?: Debt Service Coverage Ratio
20. In the Balance Sheet of a bank, Contingent Liabilities are shown as: footnote to the Balance Sheet.
21. Finance for construction of road and port is classified as: Infrastructure Finance.
22. Banks are required to declare their financial results quarterly as per provisions of : SEBI
23. Loanwas raised fromthe bank against NSC byMr.Xand noting to this effect was recorded in the issuing
PostOffice.Xdies. The nominee approaches post office for payment ofNSC.Whowill have priority i.e. bank or
nominee?: Bankwill have prior claimagainstNSC.
24. Hypothecation can be converted to pledge by: taking possession with the consent of the borrower.
25. What charge to be created for demat shares with bank as security: Lien
26. Perpetual bonds and perpetual non cumulative preference shares as part of tier I capital can be up to%of tier I capital:
40%
27. Provisions on standard Assets are shown under which head in the balance sheet of the Bank?: Other
Liabilities and Provisions on Liabilities side.
28. For classification of assets in consortium accounts, which of the following is to be considered?:
In consortium accounts, each bank will classify the account as per its record of recovery.
29. Who is bound to file particulars of chargewith theRegistrar of Companies underMCA21,when a
company creates charge of somebody on itsmovable or immovable property except byway of pledge?: officials of
the company.
30. Credit ofRs.20,000/-was taken asRs.2000/- and as a result a chequewas returned in the account forwant
of funds. Bank has already sent statement of account to the depositorwho has acknowledged receipt of the statement
of account.Whether bank is liable?:Yes. Liable to drawer of cheque.
31. Advance to a companyagainstTrust receiptwhere document of title goods transferred to bank and goods to be
released against payment by the company.Whether a charge is to be registeredwith theRegistrar ofCompanies under
MCA21?:NotRequired
32. Under multiple banking system, exchange of information between the banks is to be done for the limits of
crores and above and periodicity is : Rs.5 crores and Quarterly
33. If a LC contains a clause "about" regarding the amount and quantity of goods, howmuch tolerance is
permitted?: 10%
34. What is the type of liability for the bank on account of issue of BankGuarantee?:Contingent Liability
35. To arrive at group concern, factors to be looked into are : commonality ofmanagement + effective
control.
36. The limitations of financial statements are : only quantitative not qualitative.
37. Hypothecation described under SARFEASI Act.
38. Off Balance sheet / On Balance sheet exposure- if altered the risk will be Credit Risk.
39. Guarantors Liability: Recall the a/c and cause demand against the borrower and guarantor.
Balance in guarantor's SB a/c cannot be appropriated directly.
40. Excess of current liability over current assets means the firm may face difficulties in meeting its
financial obligations in short term.
41. If documents are to be presented in about July month: these can be presented within 5 days before
or 5 days after.
42. Pledge is defined in: Indian Contract Act
43. When limitation will not extend: Balance Confirmation signed after expiry of limitation period
45. Onmaturity of bank guarantee, an intimation is send to customer and if no response received in 30 days,
vouchers are reversed. This is done for following reason? Bank has to maintain capital on Bank
Guarantee for the purpose of capital adequacy norms.
46. Which of the following is not a disadvantage of CC account? Issuance of cheque book
47. In case of revaluation of fixed assets, what percentage of revaluation reserve will be added to Tier
II capital of the bank?: 45%
48. When a loan is recovered from guarantor for dues payable by the Principal Debtor, debtor
becomes entitled to all rights and remedies which the creditor had against the Principal Debtor. This right
of guarantor is called: Right of subrogation.
49. in case of loan against bank deposit charge is created by: assignment
50. in case of loan against NSC, charge is created by: assignment
51. What is cash loss : net loss before depreciation (Net loss minus depreciation)
52. Why fund flow statement is taken from the borrower?: To know sources from where funds have
been raised and how funds have been utilized and to know changes in net working capital position.
53. Stand by LC is just like : Financial guarantee (A guarantee of payment issued by a bank on behalf
of a client that is used as "payment of last resort" should the client fail to fulfill a contractual commitment
with a third party. Standby letters of credit are created as a sign of good faith in business transactions, and
are proof of a buyer's credit quality and repayment abilities)
54. Banks provide term loans and deferred payment guarantee to finance capital assets like plant and
machinery. What is the difference between these two: Outlay of funds.
55. For the purpose of creation of equitablemortgage, the place for deposit of the title deed is notified by :
56. Number of days allowed to opening bank and negotiating bank to verify that documents are as per
terms of LC is: 5 banking days each
57. In the case of hypothecation : both possession&ownership is with borrower
58. If stock statement is not submitted for 3 months from its due date and DP is allowed on the basis of
old stock report, then the account will be considered NPA after:90 days
59. Limitation period formortgage :12 years
60. Loan is in the name of A&B. Both have signed documents. A signs the Balance Confirmation but B
does not. In this case limitation will extend against: both
61. What is negative Lien?: A declaration by borrower that he will not sell or create charge of any
body on a particular asset without consent of the bank
62. Why banks do not grant loan to a minor?: A minor is not competent to contract Therefore, Ioan
given to a minor can not be recovered.
63. Normally bank can not grant advance to its directors. However, there are certain exemptions to this rule.
Thus a bank can grant a loan to its director against the security of: Government securities, life insurance policies or fixed
deposit;
64. If on a Letter of Credit, date is mentioned as "end of the month", then as per UCPDC 600, it will
mean: 21st to last day of the month.
65. A minor was given loan. On attaining majority he acknowledges having taken loan and promises to
pay. Whether the loan can be recovered? : He can not ratify the contract. Hence recovery not possible.
66. A loan was sanctioned against a vacant land. Subsequently a house was constructed at the site.
What security is available now to the bank? : Both
67. Preoperative expenses forms part of the following: Intangible assets
68. Aand B raised a loan jointly and both are liable jointly and severally.When the limitation period is
approaching,Aacknowledges the debtwhile Bwas away fromIndia. Limitation expires before B comes to India and
after coming, he denies acknowledging the debt. Bank can proceed for recovery of the loan as per limitation act from:
Both
69. An L/C is expiring on 10.05.2008. A commotion takes place in the area and bank could not open.
Under these circumstances can the LC be negotiated?: The L/C can not be negotiated because expiry date of
LC can not be extended if banks are closed for reasons beyond their control.
70. A loan is given by the bank on hypothecation of stock to Mr. A. Bank receives seizure order from
State Govt. What should bank do?: Bank will first adjust its dues and surplus if any wilt be shared with
the Govt.
71. 3 partners signed a document on 3 different dates. Limitation period starts from: Date of last
signatures.
72. Acknowledgement of Debt can be obtained for how many number of times : No limit
73. In the case of advance to a limited company for purchase of vehicle, the charge is registered with
Regional Transport Authority in addition to registration of charge with. Registrar of Companies. Why this is
done?:So that borrower can not sell the vehicle without intimation to the bank
74. Why banks prefer financing of bills?: because the advance is self liquidating
75. Formation of consortium, when essential :When bank touches its exposure ceiling
76. A letter of credit which is issued on request of the beneficiary in favour of his supplier: Back to Back
LC
77. As per internal policy of certain banks, the net worth of a firm does not include: a. Paid up capital b.
Free Reserve c. Share Premium d. Equity received from Foreign Investor : Revaluation Reserves
78. A lady who has taken a demand loan against FD come to the branch and wants to add name of her
minor son, as joint a/c holder. What you will do?: Name can be added only after adjustment of the loan.
79. Guarantee issued by a bank in favour of Custom department that party will fulfill export obligation for
availing exemption fromcustomduty regarding tax. Such guarantee is called: FinancialGuarantee
80. Particulars of satisfaction of charge by a company are to be filed within: 30 days from date of adjustment
of loan.
81. In a company, the registration of charges is required for: a)loan against FD b)lien on Govt
Securities c) assignment of Book Debts d) lien on Shares : Book Debts
82. LoanDelivery Systemis not applicable to: a) Loan to Soft ware industry b) export credit: export credit
83. Stamp duty in usance bill of exchange: 0.25 per 1000/ 0.75 per 1000 / 1 per 1000 / none : It is
according to value and time i.e. Advalorem(it is Rs 0.65-per Rs 1000 up to 3 months usance)
84. Property equitably mortgaged on 08/03/08. A registered mortgaged created on this property, on 05/03/2008
whichwas got registered on 08/03/2008.Whichwill have priority: registeredmortgage as itwas created earlier.
85. The Bank did not disclose all material facts regarding loan to the guarantor while obtaining
guarantee. Can guarantor escape liability?: Guarantor cannot escape from his liability as it is not necessary
to disclose all the materials facts with regards to the loan.
86. Banks are required to obtain audited financial papers from non corporate borrowers for granting
working capital limit of: Rs.25 lakh &above
87. In the case ofHypothecation: neither possession nor ownership come to Bank.
88. Negative lien means: Undertaking by the borrower not to sell or create charge on a particular
property without consent of the Bank.
89. RecentlyRBIwarned banks against charging: excessive interest to small borrowers.
90. Which of the following is correct regarding reverse mortgage?: The scheme is available to senior
citizens only; the property should be self occupied by the owner.
91. What are the rules relating to advance against Kisan Vikas Petra?: It can be granted provided
KVP is assigned to the bank.
92. Bailment of goods to secure a debt is called: pledge.
93. Deferred payment guarantee issued by a bank is a : Contingent Liability.
94. When mortgage is created by a person by deposit of title deed orally, it is called mortgage :
Equitable
95. For the purpose of creation of equitablemortgage, the place for deposit of the title deed is notified by : State
Govt.
96. Under SARFAESIAct 2002 the banks give notice for payment of due amount to the borrower / owner of
charged assets
97. Action under SARFAESI Act can be taken simultaneously in DRT/Suit filed cases without taking
permission from the Competent Court
98. For enforcing right under SARFESAI Act, in the case of consortium advances, consent of which
bankers is required?: consent of 60% bankers by value is required.
99. SupervisoryReviewaccording towhich Central Bank of the country is to ensure that proper capital has been
provided for
risk exposure andmaintain proper systemfor the same is provided under?: Pillar II of Basel IL
100. Chargewhere SARFAESI action can not taken: Pledge
101. For taking action under SARFAESI, the outstanding should be:More than Rs.1.00 lac
102. Limit for filing suit in DRT: Rs.10 lacs and above
103. For acquiring securities charged to the bank under SARFAESI, notice of days is required to be
given to the borrower and for sale of securities so acquired notice of days is 60 & 30 days
104. As per a recent judgement of the Supreme Court,while initiating action under SARFAESI, the position in case
of suit filed in DRT would be: that no permission is required fromDRT and action under SARFAESI can be initiated as
both the cases can run together.
105. For taking action under SARFAESI, the outstanding should be:More than Rs.1.00 lac
106. In case of SARFAESI Act, before preferring appeal to DRAT, how much amount is to be deposited
by the borrower with DRAT?: 50% of the claim amount which
can be reduced to 25% by the DRAT.
For making application to DRT, no amount is to be deposited
1. Charged created by Bailment of goods to secure payment of a debt is called: Pledge
2. Guarantee is defined in: Indian Contract Act
3. If on a letter of credit it is not mentioned whether it is revocable or irrevocable, then as UCPDC 600,
it will be treated as : Irrevocable LC
4. A director of a bank wants to raise loan of Rs 10 lakh from his bank against Life Insurance Policy
with surrender value of more than Rs 15 lakh. What will be done?: Bank can sanction.
5. In which of the following cases, the document is required to be attested by two witnesses?: (a)
Pledge (b) Hypothecation (c) Mortgage (d) Lien
6. A document was executed by three partners in different dates. When shall the limitation period
start?: The limitation period will start from the last date i.e. when the document was executed by the
last partner.
7. Loan to a company engaged in construction of projects, which method of financing is to be used:
Cash Budget method.
8. What is the meaning of Group in Exposure Norms: Commonality ofmanagement
9. The procedure used for ascertaining Customers Creditworth is called: CreditRating
10. Green field project is related to : setting up new projects
11. What is Real Rate of Interest?: Prevailing interest rate minus inflation rate
12. Themain distinction between Hypothecation and Pledge is on accountof : Possession
13. In Letter Of Credit jmporter is called: Opener of Letter of Credit
14. Cash Budgetmethod is used for sanctioningworking capital limits to : Seasonal Industries
15. Bank's charge over LIC Policy is created by: Assignment
16. Guarantee issued by a bankwhich is still outstanding is shown in the Balance Sheet as: Contingent Liability.
17. Why loan against Partly Paid Shares are not preferred by banks?: Because partly paid shares represent
contingent liability. In case companymakes demand and the borrower does not pay the amount then the bank will
have to pay the amount otherwise share may be forfeited.Moreover it is prohibited by RBI
18. Return on Investment is calculated to ascertain of the unit.: Profitability
19. For ascertaining that a firm will be able to generate sufficient profit to repay instalments of term
loan, which ratio is computed?: Debt Service Coverage Ratio
20. In the Balance Sheet of a bank, Contingent Liabilities are shown as: footnote to the Balance Sheet.
21. Finance for construction of road and port is classified as: Infrastructure Finance.
22. Banks are required to declare their financial results quarterly as per provisions of : SEBI
23. Loanwas raised fromthe bank against NSC byMr.Xand noting to this effect was recorded in the issuing
PostOffice.Xdies. The nominee approaches post office for payment ofNSC.Whowill have priority i.e. bank or
nominee?: Bankwill have prior claimagainstNSC.
24. Hypothecation can be converted to pledge by: taking possession with the consent of the borrower.
25. What charge to be created for demat shares with bank as security: Lien
26. Perpetual bonds and perpetual non cumulative preference shares as part of tier I capital can be up to%of tier I capital:
40%
27. Provisions on standard Assets are shown under which head in the balance sheet of the Bank?: Other
Liabilities and Provisions on Liabilities side.
28. For classification of assets in consortium accounts, which of the following is to be considered?:
In consortium accounts, each bank will classify the account as per its record of recovery.
29. Who is bound to file particulars of chargewith theRegistrar of Companies underMCA21,when a
company creates charge of somebody on itsmovable or immovable property except byway of pledge?: officials of
the company.
30. Credit ofRs.20,000/-was taken asRs.2000/- and as a result a chequewas returned in the account forwant
of funds. Bank has already sent statement of account to the depositorwho has acknowledged receipt of the statement
of account.Whether bank is liable?:Yes. Liable to drawer of cheque.
31. Advance to a companyagainstTrust receiptwhere document of title goods transferred to bank and goods to be
released against payment by the company.Whether a charge is to be registeredwith theRegistrar ofCompanies under
MCA21?:NotRequired
32. Under multiple banking system, exchange of information between the banks is to be done for the limits of
crores and above and periodicity is : Rs.5 crores and Quarterly
33. If a LC contains a clause "about" regarding the amount and quantity of goods, howmuch tolerance is
permitted?: 10%
34. What is the type of liability for the bank on account of issue of BankGuarantee?:Contingent Liability
35. To arrive at group concern, factors to be looked into are : commonality ofmanagement + effective
control.
36. The limitations of financial statements are : only quantitative not qualitative.
37. Hypothecation described under SARFEASI Act.
38. Off Balance sheet / On Balance sheet exposure- if altered the risk will be Credit Risk.
39. Guarantors Liability: Recall the a/c and cause demand against the borrower and guarantor.
Balance in guarantor's SB a/c cannot be appropriated directly.
40. Excess of current liability over current assets means the firm may face difficulties in meeting its
financial obligations in short term.
41. If documents are to be presented in about July month: these can be presented within 5 days before
or 5 days after.
42. Pledge is defined in: Indian Contract Act
43. When limitation will not extend: Balance Confirmation signed after expiry of limitation period
45. Onmaturity of bank guarantee, an intimation is send to customer and if no response received in 30 days,
vouchers are reversed. This is done for following reason? Bank has to maintain capital on Bank
Guarantee for the purpose of capital adequacy norms.
46. Which of the following is not a disadvantage of CC account? Issuance of cheque book
47. In case of revaluation of fixed assets, what percentage of revaluation reserve will be added to Tier
II capital of the bank?: 45%
48. When a loan is recovered from guarantor for dues payable by the Principal Debtor, debtor
becomes entitled to all rights and remedies which the creditor had against the Principal Debtor. This right
of guarantor is called: Right of subrogation.
49. in case of loan against bank deposit charge is created by: assignment
50. in case of loan against NSC, charge is created by: assignment
51. What is cash loss : net loss before depreciation (Net loss minus depreciation)
52. Why fund flow statement is taken from the borrower?: To know sources from where funds have
been raised and how funds have been utilized and to know changes in net working capital position.
53. Stand by LC is just like : Financial guarantee (A guarantee of payment issued by a bank on behalf
of a client that is used as "payment of last resort" should the client fail to fulfill a contractual commitment
with a third party. Standby letters of credit are created as a sign of good faith in business transactions, and
are proof of a buyer's credit quality and repayment abilities)
54. Banks provide term loans and deferred payment guarantee to finance capital assets like plant and
machinery. What is the difference between these two: Outlay of funds.
55. For the purpose of creation of equitablemortgage, the place for deposit of the title deed is notified by :
56. Number of days allowed to opening bank and negotiating bank to verify that documents are as per
terms of LC is: 5 banking days each
57. In the case of hypothecation : both possession&ownership is with borrower
58. If stock statement is not submitted for 3 months from its due date and DP is allowed on the basis of
old stock report, then the account will be considered NPA after:90 days
59. Limitation period formortgage :12 years
60. Loan is in the name of A&B. Both have signed documents. A signs the Balance Confirmation but B
does not. In this case limitation will extend against: both
61. What is negative Lien?: A declaration by borrower that he will not sell or create charge of any
body on a particular asset without consent of the bank
62. Why banks do not grant loan to a minor?: A minor is not competent to contract Therefore, Ioan
given to a minor can not be recovered.
63. Normally bank can not grant advance to its directors. However, there are certain exemptions to this rule.
Thus a bank can grant a loan to its director against the security of: Government securities, life insurance policies or fixed
deposit;
64. If on a Letter of Credit, date is mentioned as "end of the month", then as per UCPDC 600, it will
mean: 21st to last day of the month.
65. A minor was given loan. On attaining majority he acknowledges having taken loan and promises to
pay. Whether the loan can be recovered? : He can not ratify the contract. Hence recovery not possible.
66. A loan was sanctioned against a vacant land. Subsequently a house was constructed at the site.
What security is available now to the bank? : Both
67. Preoperative expenses forms part of the following: Intangible assets
68. Aand B raised a loan jointly and both are liable jointly and severally.When the limitation period is
approaching,Aacknowledges the debtwhile Bwas away fromIndia. Limitation expires before B comes to India and
after coming, he denies acknowledging the debt. Bank can proceed for recovery of the loan as per limitation act from:
Both
69. An L/C is expiring on 10.05.2008. A commotion takes place in the area and bank could not open.
Under these circumstances can the LC be negotiated?: The L/C can not be negotiated because expiry date of
LC can not be extended if banks are closed for reasons beyond their control.
70. A loan is given by the bank on hypothecation of stock to Mr. A. Bank receives seizure order from
State Govt. What should bank do?: Bank will first adjust its dues and surplus if any wilt be shared with
the Govt.
71. 3 partners signed a document on 3 different dates. Limitation period starts from: Date of last
signatures.
72. Acknowledgement of Debt can be obtained for how many number of times : No limit
73. In the case of advance to a limited company for purchase of vehicle, the charge is registered with
Regional Transport Authority in addition to registration of charge with. Registrar of Companies. Why this is
done?:So that borrower can not sell the vehicle without intimation to the bank
74. Why banks prefer financing of bills?: because the advance is self liquidating
75. Formation of consortium, when essential :When bank touches its exposure ceiling
76. A letter of credit which is issued on request of the beneficiary in favour of his supplier: Back to Back
LC
77. As per internal policy of certain banks, the net worth of a firm does not include: a. Paid up capital b.
Free Reserve c. Share Premium d. Equity received from Foreign Investor : Revaluation Reserves
78. A lady who has taken a demand loan against FD come to the branch and wants to add name of her
minor son, as joint a/c holder. What you will do?: Name can be added only after adjustment of the loan.
79. Guarantee issued by a bank in favour of Custom department that party will fulfill export obligation for
availing exemption fromcustomduty regarding tax. Such guarantee is called: FinancialGuarantee
80. Particulars of satisfaction of charge by a company are to be filed within: 30 days from date of adjustment
of loan.
81. In a company, the registration of charges is required for: a)loan against FD b)lien on Govt
Securities c) assignment of Book Debts d) lien on Shares : Book Debts
82. LoanDelivery Systemis not applicable to: a) Loan to Soft ware industry b) export credit: export credit
83. Stamp duty in usance bill of exchange: 0.25 per 1000/ 0.75 per 1000 / 1 per 1000 / none : It is
according to value and time i.e. Advalorem(it is Rs 0.65-per Rs 1000 up to 3 months usance)
84. Property equitably mortgaged on 08/03/08. A registered mortgaged created on this property, on 05/03/2008
whichwas got registered on 08/03/2008.Whichwill have priority: registeredmortgage as itwas created earlier.
85. The Bank did not disclose all material facts regarding loan to the guarantor while obtaining
guarantee. Can guarantor escape liability?: Guarantor cannot escape from his liability as it is not necessary
to disclose all the materials facts with regards to the loan.
86. Banks are required to obtain audited financial papers from non corporate borrowers for granting
working capital limit of: Rs.25 lakh &above
87. In the case ofHypothecation: neither possession nor ownership come to Bank.
88. Negative lien means: Undertaking by the borrower not to sell or create charge on a particular
property without consent of the Bank.
89. RecentlyRBIwarned banks against charging: excessive interest to small borrowers.
90. Which of the following is correct regarding reverse mortgage?: The scheme is available to senior
citizens only; the property should be self occupied by the owner.
91. What are the rules relating to advance against Kisan Vikas Petra?: It can be granted provided
KVP is assigned to the bank.
92. Bailment of goods to secure a debt is called: pledge.
93. Deferred payment guarantee issued by a bank is a : Contingent Liability.
94. When mortgage is created by a person by deposit of title deed orally, it is called mortgage :
Equitable
95. For the purpose of creation of equitablemortgage, the place for deposit of the title deed is notified by : State
Govt.
96. Under SARFAESIAct 2002 the banks give notice for payment of due amount to the borrower / owner of
charged assets
97. Action under SARFAESI Act can be taken simultaneously in DRT/Suit filed cases without taking
permission from the Competent Court
98. For enforcing right under SARFESAI Act, in the case of consortium advances, consent of which
bankers is required?: consent of 60% bankers by value is required.
99. SupervisoryReviewaccording towhich Central Bank of the country is to ensure that proper capital has been
provided for
risk exposure andmaintain proper systemfor the same is provided under?: Pillar II of Basel IL
100. Chargewhere SARFAESI action can not taken: Pledge
101. For taking action under SARFAESI, the outstanding should be:More than Rs.1.00 lac
102. Limit for filing suit in DRT: Rs.10 lacs and above
103. For acquiring securities charged to the bank under SARFAESI, notice of days is required to be
given to the borrower and for sale of securities so acquired notice of days is 60 & 30 days
104. As per a recent judgement of the Supreme Court,while initiating action under SARFAESI, the position in case
of suit filed in DRT would be: that no permission is required fromDRT and action under SARFAESI can be initiated as
both the cases can run together.
105. For taking action under SARFAESI, the outstanding should be:More than Rs.1.00 lac
106. In case of SARFAESI Act, before preferring appeal to DRAT, how much amount is to be deposited
by the borrower with DRAT?: 50% of the claim amount which
can be reduced to 25% by the DRAT.
For making application to DRT, no amount is to be deposited
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