Question

A 'secured creditor' under the SARFAESI Act includes banks, financial institutions and which other entity?

Q: Answer-A 'secured creditor' under the SARFAESI Act includes banks, financial institutions and which other e...

Under the SARFAESI Act, a secured creditor includes any bank or financial institution, any Asset Reconstruction Company, debenture trustee, and any other trustee holding securities on behalf of bondholders, in whose favour a security interest is created. The definition has been expanded over time to include various creditors. Asset Reconstruction Companies are central to the Acts scheme of acquiring and resolving distressed assets. The status of secured creditor is essential to invoke the enforcement provisions.