Question

    Under the SARFAESI Act, which of the following is a

    right available to the secured creditor to recover a loan?
    A To appoint a receiver and take possession of the borrower’s assets Correct Answer Incorrect Answer
    B To file a civil suit in the court of law Correct Answer Incorrect Answer
    C To seize the borrower’s personal property directly Correct Answer Incorrect Answer
    D To write off the entire loan balance Correct Answer Incorrect Answer
    E To claim the borrower’s assets through bankruptcy proceedings Correct Answer Incorrect Answer

    Solution

    Under the SARFAESI Act, a secured creditor has the right to appoint a receiver and take possession of the borrower’s assets without going to court, provided certain conditions are met.

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