Question

When granting a credit facility to a Hindu Undivided Family (HU

  • F , which documentation requirement and execution rule must the bank follow to ensure legal enforceability and secure borrowing?
A All minor family members must sign the DPN, while the Karta signs only as a witness.
B The Karta executes loan documents on behalf of the HUF, and consent is obtained from all adult coparceners for secured borrowings.
C The HUF must execute a Partnership Deed registered with the Registrar of Firms.
D Only female coparceners are permitted to execute the loan documents as per personal law.
E The Karta can pledge personal properties to secure the loan without requiring the consent of adult coparceners.
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