Question

Under Section 13(2), before enforcing security interest, the secured creditor must serve a notice giving the borrower how many days to discharge liability?

Q: Answer-Under Section 13(2), before enforcing security interest, the secured creditor must serve a notice gi...

Section 132 of the SARFAESI Act requires a secured creditor to serve a notice in writing to the borrower whose account is classified as an NPA, calling upon the borrower to discharge the full liability within sixty days. If the borrower fails to pay within this period, the secured creditor may exercise the enforcement measures under Section 134. This sixty-day notice gives the borrower a final opportunity to repay before the bank takes possession of the secured assets.