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    Question

    In the context of secured lending, the Right of Lien

    allows a bank to:
    A Sell a borrower’s asset without notice Correct Answer Incorrect Answer
    B Transfer the asset ownership Correct Answer Incorrect Answer
    C Retain possession until dues are cleared Correct Answer Incorrect Answer
    D Demand repayment without any agreement Correct Answer Incorrect Answer
    E Apply SARFAESI provisions Correct Answer Incorrect Answer

    Solution

    Lien is the right to retain goods/property until a debt is discharged. Governed under Indian Contract Act, 1872, it doesn’t allow selling unless it is a particular lien. So (c) is correct.

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