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      Question

      As per the provisions of the SARFAESI Act, if the

      borrower fails to comply with the notice, the Bank may:
      A Take possession of the security for the loan Correct Answer Incorrect Answer
      B Sale or lease or assign the right over the security Correct Answer Incorrect Answer
      C Manage the same or appoint any person to manage the same Correct Answer Incorrect Answer
      D Both 2 and 3 Correct Answer Incorrect Answer
      E All of the above Correct Answer Incorrect Answer

      Solution

      1. Take possession of the security for the loan 2. Sale or lease or assign the right over the security 3. Manage the same or appoint any person to manage the same The SARFAESI Act also provides for that establishment of Asset Reconstruction Companies (ARCs) regulated by RBI to acquire assets from banks and financial institutions. The Act provides for sale of financial assets by banks and financial institutions to asset reconstruction companies (ARCs).

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