SARFASI ACT 2002
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Free sample — 8 of 65 rapid-fire Q&A cards.
What does SARFAESI stand for?
SARFAESI stands for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
Under which section of SARFAESI Act can a secured creditor issue a demand notice to the borrower?
Section 13(2) of the SARFAESI Act.
What is the primary objective of the SARFAESI Act, 2002?
The primary objective is to enable banks and financial institutions to recover NPAs (Non-Performing Assets) by enforcing security interests without court intervention.
What is the minimum net owned fund required for registration as an ARC under SARFAESI?
Minimum net owned fund of Rs. 100 crore.
Under SARFAESI Act, what is the minimum NPA threshold for a secured creditor to initiate action?
The outstanding amount must be Rs. 1 lakh or more and the account should be classified as NPA (Sub-standard, Doubtful, or Loss).
Under SARFAESI, within how many days must a secured creditor take action after the 60-day notice period expires?
No specific further time limit; creditor may proceed immediately.
What notice period must a secured creditor give to the borrower before taking possession of secured assets under SARFAESI?
The secured creditor must issue a 60-day demand notice to the borrower to repay the dues before taking possession of the secured assets.
Which section of SARFAESI Act deals with the establishment of the Central Registry?
Section 20 of the SARFAESI Act.
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