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1. Under the provision of SARAESI Act 2002 a charge on moveable property in favour of securd
without delivery of possession to the creditor is called:
A. mortgage B. assignmen
C. pledge D. hypothecation
Your answer is: D. hypothecation

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2. _______ specialized in resolution of stressed assets
A. Debt Recovery Tribunal B. ARC
C. All of these D. None of these
Your answer is: B. ARC

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3. an asset is sold by the secured creditor, what would be the order for the appropriation of
proceeds:
A. first towards costs, charge incidental towards the B. first towards the dues of the secured creditor
preservation of securities C. first towards costs and dues to the secured on prorate
basis
D. secondly, if there is surplus towards other person entitled
to the asse
Your answer is: A. first towards costs, charge incidental towards the preservation of securities

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4. What is the time period for the validity of notice of caveat:
A. 60 days from the date of lodgement B. 90 days from the date of lodgement
C. 120 days from the date of lodgement D. 30 days from the date of lodgement
Your answer is: B. 90 days from the date of lodgement

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5. Which of the following is not a Public Financial Institution:
A. National Bank for Agriculture & Rural Development B. Life Insurance Corporation of India (LIC)
(NABARD) C. State Financial Corporations
D. Axis Bank Limited
Your answer is: D. Axis Bank Limited

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6. Which of the following Risk develops from the business transactions done by the Banks
exposed to potential Loss?
A. Financial Risk B. Market Risk
C. Liquidity Risk D. Interest Rate Risk
Your answer is: A. Financial Risk

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7. At the time of take over the bad loans from 3 banks it is found that these banks have field
suits in different DRTs. Securitisation company wants to get these cases in one DRT, which
can be permitted by:
A. Central Govt B. Supreme Cour
C. . RBI D. DRAT
Your answer is: D. DRAT

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8. Under the provision of SARFAESI Act 2002 which of the following is not part of the financial
asset reconstruction:
A. take over of management of the unit B. sale if the asset
C. taking possession of the assets D. none of the above
Your answer is: D. none of the above
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9. Which of the following statements regarding security enforcement is not true:
A. Any security interest can be enforced by secured B. If funds are raised through debt securities, then action
creditor without intervention of the Court or Tribunal can be initiated even if secured debt was not classified as
except the provisions contained in Section 69 or 69A of NPA
Transfer of Property Act C. No action can be taken if the debt is time barred or it
involves agricultural land
D. No action can be taken when amount of due is more
than Rs. 5 lakhs or when amount due is less than 40% of
the principal amount and interest thereon
Your answer is: D. No action can be taken when amount of due is more than Rs. 5 lakhs or when amount due is less than 40% of
the principal amount and interest thereon

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10. . Before which for a can an asset reconstruction company file an application for
enforcement of its security interest:
A. Debt Recovery Tribunal B. High Court
C. District Court D. National Company Law Tribunal
Your answer is: A. Debt Recovery Tribunal

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11. In which of the following cases, the constitutional validity of the SARFAESI Act 2002 was
questioned before Supreme Court:
A. Manchester Chemicals vs ICICI bank B. Manchester Chemicals vs Union of India
C. Mardia Chemicals vs Union of Indiadc D. Mardia Chemicals vs ICICI Bank
Your answer is: C. Mardia Chemicals vs Union of Indiadc

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12. If there are more than one borrower, how should the demand notice be served:
A. Demand notice must be served only on those borrowers B. Demand notice must be served on any one of the
whose borrowing is more than 40% of the debt borrowers
C. Demand notice must be served on the person whose D. Demand notice must be served on all borrowers
name appears first in the list
Your answer is: D. Demand notice must be served on all borrowers

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13. What is the purpose of Central Registry:
A. Registration of transaction of securitisation and B. Storehouse of information relating to securitized assets
reconstruction of financial assets and creation of C. Registration of information relating to secured creditors
security interest and related borrowers
D. Collection of information related to securitization cases
Your answer is: A. Registration of transaction of securitisation and reconstruction of financial assets and creation of security
interest

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14. In case of appeal by the borrower, what is the amount to be deposited with the Appellate
Tribuna
A. Fifty percent of the amount of debt due B. Forty percent of the amount of debt due
C. Sixty percent of the amount of debt due D. Twenty percent of the amount of debt due
Your answer is: A. Fifty percent of the amount of debt due

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15. What time period is to be given to the borrower as a notice under section 13(2) of SARFAESI
Act, 2002
A. 30 days B. 60 day
C. 45 days D. 90 days
Your answer is: B. 60 day
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16. In case a borrower resides in Jammu & Kashmir, with whom shall an application be filed:
A. Court of District Judge in the State having jurisdiction B. Court of District Judge in that State having jurisdiction
over the secured creditor over the borrower
C. High Court of the State D. Court of the Chief Metropolitan Judge having jurisdiction
over the secured creditor
Your answer is: B. Court of District Judge in that State having jurisdiction over the borrower

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17. What is the time limit within which appeal against penalties can be made:
A. 90 days from the date on which such order was passed B. 30 days from the date on which such order was passed
C. 120 days from the date on which such order was passed D. 60 days from the date on which such order was passed
Your answer is: B. 30 days from the date on which such order was passed

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18. To whom shall the Central Government delegate its powers and functions in relation to
establishment, operations and regulations of the Central Registry:
A. Ministry of Communications and Information B. Debt Recovery Tribunal
Technology C. Ministry of Information and Broadcasting
D. Reserve Bank of India
Your answer is: D. Reserve Bank of India

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19. In the process of securitisation the non-liquid financial assets (NPA) are converted into
markable securities in the form of:
A. shares B. debentures
C. pass through certificates D. security receipts
Your answer is: C. pass through certificates

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20. Can debtor of a borrower make payment directly to the Bank:
A. No, the debtor of borrower cannot be asked to make B. Yes, where the debtor of borrower has acquired any of
payment directly to the Bank the secured assets from the borrower and from whom
any money is due to the borrower
C. The debtor of borrower can make payment directly to D. The debtor of borrower can make payment directly to
the Bank but with the prior approval of RBI the Bank, if the Bank agrees to such an arrangement
Your answer is: B. Yes, where the debtor of borrower has acquired any of the secured assets from the borrower and from
whom any money is due to the borrower

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21. Who shall be responsible for the control and management of the Central Register:
A. Central Government B. Central Registrar
C. Any department authorised by the Central Government D. Reserve Bank of India
Your answer is: B. Central Registrar

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22. Taking over the management of business of a borrower by a secured creditor falls under:
A. Section 13(4)(b) B. Section 9(a)
C. Section 6(1) D. Section 15
Your answer is: A. Section 13(4)(b)

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23. When a secured creditor takes over the management of business of a borrower, he may
appoint:
A. As many persons as it thinks fit to be the B. As many persons as it thinks fit to be the registered
directors/administrators of the business of that valuers of the business of that borrower
borrower, as the case may be C. The auditors of the business of that borrower
D. The liquidator who shall take over the liquidation
proceedings
Your answer is: A. As many persons as it thinks fit to be the directors/administrators of the business of that borrower, as the
case may be
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24. Which court shall try any offence punishable under this Act:
A. No Court inferior to that of Metropolitan Magistrate or a B. No Court inferior to that of High Court
Judicial Magistrate of Second Class C. No Court inferior to that of Metropolitan Magistrate or a
Judicial Magistrate of First Class
D. No Court inferior to that of Principal Junior Civil Judge or
a Judicial Magistrate of First Class
Your answer is: C. No Court inferior to that of Metropolitan Magistrate or a Judicial Magistrate of First Class

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25. Under the provision of SARFAESI Act 2002, what is meant by enforcement of security
interest:
A. sale of assets of the borrowing party by the bank B. sale of charged assets by the secured creditor through
DRT
C. sale of charged assets by the secured creditor without D. getting banks charge registered with Central Registry
court intervention
Your answer is: C. sale of charged assets by the secured creditor without court intervention