A public sector bank manager sanctioned loans to ineligible applicants. The applicants paid the manager Rs. 1 lakh per loan. The manager also facilitated waiver of penalties for defaulters who paid "facilitation fees." Under PCA, which statements are correct? Statement 1: Sanctioning ineligible loans for gratification is an offence under Section 7. Statement 2: Waiving penalties in exchange for fees is an offence of abuse of official position. Statement 3: The manager can claim defense if loans were eventually recovered. Statement 4: Applicants and defaulters are accomplices under Section 12 of PCA. Which statements are correct?