Transcript Document

INDIAN INSTITUTE OF
BANKING & FINANCE
JAIIB
MODULE (C & D)
LEGAL ASPECTS OF BANKING
OPERATIONS
Friday, 07 April, 06
T M C VASUDEVAN
[email protected]
01.. Identify which one is correct.
A.. A contract of indemnity has two persons
B.. A contract of guarantee also has two
persons.
C.. A minor cannot be given loan in his name
D.. A pledge in respect of company advance
has to be registered with ROC.
02..The award of a Banking Ombudsman will be
reviewed by
A.. The Executive Director of RBI
B.. The Deputy Governor in charge of Rural
Planning and Credit Department of RBI.
C.. The CMD of State Bank of India
D.. The Banking Ombudsman himself
03..Which is not correct (Banking
Ombudsman)
A.. The maximum amount the Banking
Ombudsman can award as compensation is
Rs.10 lacs.
B.. Limitation period for filing of the review
application is one month.
C.. Failure to honour guarantee comes under
its purview .
D.. None of the above
04..Which one is incorrect(Consumer
Protection Council)
A.. The Collector of the District to be the Chairman
of the District Council
B.. State Consumer Protection Council to meet at
least 3 meetings every year..
C..For Central Consumer Protection Council the
Chairman will be the Minister in charge of the
consumer affairs in the Central Government.
D.. The highest council is the Central Council who
has the jurisdiction for the entire country.
05..For filing any complaint before a District
Forum, State Commission or the National
Commission the limitation period is from the
date of cause of action.
A.. 1 year
B.. 2 years
C.. 3 years
D.. None of the above
06.. If the compensation claimed is above
Rs.25 lacs but does not exceed Rs1 Crore
then the appeals against the orders of any
District Forum to be preferred before
A.. The High Court
B.. The State Commission
C.. The Central Council
D.. The Supreme Court
07.. For inspection of books by order of Court
or Judge to be served on the bank at least ,
before the same is to be obeyed.
A.. 10 days
B.. 14 days
C.. 30 days
D.. None of these
08..Based on the mere entries (as per
provisions of the Banker’s Book Evidence
Act,1891
A.. A person can be made liable
B.. A person cannot be made liable
C.. Further evidence necessary
D.. Further evidence not necessary
09..Bankers books (identify the
odd one)
A.. Daybooks
B.. Magnetic Tape
C.. Records kept at Disaster recovery site
D.. None of these
10..The SECURITISATION AND
RECONSTRUCTION OF FINANCIAL
ASSETS AND ENFORCEMENT OF
SECURITY INTEREST, 2002
(SARFAESI ACT)
A.. Is effective wef 21 June 2002.
B.. Not applicable in the State of Jammu & Kashmir
C.. Applicable to housing finance companies as
notified by the Central Government
D.. Applies for cases where security interests are
established for due repayment.
11..In Mardia Chemicals vs
Union of India Supreme Court
as declared that
A.. SARFAESI Act is Constitutionally valid
B.. Except a part of Section 17(2)
C.. To Deposit 75% for appeal, the Apex court
was not in favour
D.. All the above
12.. The Government of India has
A.. issued an order
B.. issued a notification amending the
Sec17(2) of SARFAESI Act.
C.. Instead of 75%, the borrower filing
an appeal has to deposit 50%
D.. Both B & C are appropriate
13..For classification of any
account as NPA it is important
that the classification is done as
per
A.. Directives of Head Office of the Bank
concerned
B.. Guidelines of R B I
C.. Guidelines of the Concerned Bank’s
Corporate Office
D.. Directives of R B I
14..The Originator is
A.. The Financial Institution
B.. The Debtor
C.. The Guarantor
D.. None of them
15.. Who cannot be a Qualified Institutional
Buyer.
A.. Bank
B.. Insurance Company
C.. Foreign institutional investor
D.. A High Net individual Customer of
a Bank
16..A reconstruction company
A.. is engaged as property developer
B.. is formed for the purpose of asset
reconstruction
C.. is registered with SEBI
D.. None of these
17..Acqusition of financial asset by
Securitisation or reconstruction
company from the Originator is
called
A.. Take Over
B.. Purchase
C.. Contract
D.. None of these
18.. SEBI is the regulatory
authority for securitisation or
reconstruction company.
A.. The statement is not incorrect
B.. The statement is not false
C.. It is not SEBI but the Central Government
D.. None of these
19..The Securitisation Company not only
to be registered under the Companies Act
but also needs registration from RBI as per
A.. RBI Act
B.. Companies Act
C.. SARFAESI Act
D.. SEBI Act
20..Security interest does not include
A.. Mortgage
B.. Hypothecation
C.. Assignment
D.. None of these
21- A person who is holding 12% of the
paid up equity capital of the
reconstruction company is known as
A.. Sponsor
B.. Obligor
C.. Originator
D.. Institutional investor
22- A security receipt is
A.. Similar to Bank’s Fixed Deposit receipt
B.. Issued by Securitisation Company
C.. Issued by the Bank
D.. Both B & C
23..Which is incorrect
A.. A Reconstruction company to obtain
registration certificate from RBI.
B.. It has to have owned funds not less than
Rs.2 crores
C.. It cannot formulate separate schemes for
acquisition of financial asset.
D.. It has to disclose the risk factors to the
investors.
24.. The Securitisation company can acquire
financial asset without execution of any deed
of assignment or transfer in its favour by the
original creditor.
A.. True
B.. False
C.. Without agreement how it can be legally
valid
D.. Deed of Assignment is a must.
25.. Debenture
A.. Appears on the left hand side of the balance
sheet
B.. It is shown as liability representing
commitment
C.. It is for payment of consideration to be paid
to the bank for acquisition of financial asset
from it
D.. It represents the money borrowed.
26.. Security Receipt
A.. is a document
B.. is issued by the bank
C.. is issued in favour of the investors
D.. All the above
27.. The Security receipt issued to the holder
does not attract registration as per the
Registration Act,1908.
A.. True
B.. False
C.. Registration compulsory for such
receipts.
D.. None of the above
28. If there is a dispute among the
bank,securitisation company and the
qualified institutional buyer, then the same
to be settled by conciliation or arbitration
as provided in the
A.. Reserve Bank of India Act
B.. SARFAESI Act
C.. SEBI Act
D.. None of these
29..The power given to the
secured creditor, as creditor has
overriding effect over the
provisions related to mortgage in
A.. The Registration Act
B.. The Transfer of Property Act
C.. The Contract Act
D.. The SARFAESI Act
30..As per Sec 13(2) of the SARFAESI
Act the first notice to be given asking
for clearance of full liability within
A.. 30 days
B.. 60 days
C.. 60 days from the date of notice
D.. 60 days from the receipt of notice
31.. A borrower has been asked to repay as
per provisions of SARFAESI Act. He has sent
a reply. The bank responded to the notice and
made their position clear. Based on that reply,
the borrower
A.. can file an appeal
B.. in the DRT
C.. cannot file an appeal
D.. can seek appropriate court’s intervention
32.. For a Public Sector bank an Authorized
Officer
A.. Officer of the bank
B.. At least a Chief Manager
C.. Branch Manager
D.. Minimum AGM level
33..If the offer of sale of property is
accepted by the purchaser and the
secured creditor confirms then the
purchaser has to deposit
A.. 100%
B.. 75%
C.. 50%
D.. 25%
34..Against the DRT’s order, appeal
can be filed to the appellate
Tribunal within 30 days.
A.. Subject to remitting 50%
B.. The Tribunal may reduce to 25%
C.. The Tribunal to record the reasons
D.. All are correct
35.. Registration is not required
on certain things and charges.
Identify the Act.
A.. Merchant Shipping Act,1958
B.. Patents Act,1970
C.. Designs Act 2000
D.. None
36.. A bank has sold the security under
the Act. After that they wish to proceed
in the civil court as the liability
outstanding is Rs.7.00 lacs
A.. Not possible
B.. Possible
C.. Impossible
D..Other legal recourse not available
37..The Banking Ombudsman
from his office could be
removed in the public interest by
A.. Parliament
B.. RBI
C.. Central Government
D.. Finance Ministry
38.. The Arbitral Award is
deemed to be made on
A.. When the Arbitrator delivers his order
B.. When the Banking Ombudsman signs the
same
C.. Both A & B are correct
D.. Only A is correct
39..The Debt Recovery Tribunal Act is
applicable to
A.. Private Banks
B.. Nationalised Banks
C.. Co-operative Banks
D.. All the above
40..Recovery -Officer (DRT related) is
A.. Recovery Officer of the creditor bank
B.. Appointed by the Central Government
C.. Appointed by the Head Office of a Bank
D.. Appointed by RBI
41..DRT (Tribunal) to dispose off the
application within
A.. 3 months
B.. 6 months
C.. 180 days
D.. None of these
42..The Correction any clerical
or arithmetical mistake in the
Recovery Certificate has to be
done by
A.. Concerned Clerk himself
B.. The Presiding Officer of the Tribunal
C.. The Recovery Officer
D.. Any one of them
43..The Recovery officer while carrying
out his job, a third party is affected. Then
he can file an appeal
A.. Within 30 days
B.. To the Tribunal
C.. Both A& B are correct
D.. Both A & B are wrong
44..Who is not the public servant as per
the Sect21 of the Indian Penal Code.
A.. The Chairperson of an Appellate Tribunal
B.. A Director of a Public Limited Company
C.. The Recovery Officer
D.. The Presiding Officer of a tribunal
45..There is an existing Decree (yet to be
enforced) and the DRT
A.. can issue recovery certificate thereon
B.. cannot issue
C.. has to obtain concurrence of the earlier
court
D.. can act individually
46.. Bank has given a loan to his borrower on
the personal surety of his brother in law. The
borrower has defaulted. When the bank
approached the guarantor he has advised the
bank to exhaust all the remedies against the
borrower. The bank relied on their agreement
A.. The bank will succeed
B.. The bank will loose
C.. The guarantor is correct
D.. The guarantor is not correct
47..The bailee is responsible in
case there is a loss to the goods
bailed.
A.. True
B.. If he is not taking adequate care
C.. It is bailor and not bailee responsible
D.. Both are responsible
48..Under Pledge, the possession
is with the
A.. Borrower
B.. Creditor
C.. Owner
D.. None
49.. No consideration is necessary
in respect of
A.. An agency
B.. Safe Deposit Locker
C.. Mortgage
D.. Demand Promissory Note
50.. The right of re-sale is available to
A.. An unpaid seller
B.. The user
C.. The Debtor
D.. All
51.. A company can have
maximum number of directors
A.. 7
B.. 12
C.. 15
D.. 20
52.. To receive rents and profits arising
from the property
A.. Simple Mortgage
B.. Usufructuary Mortgage
C.. English Mortgage
D.. Mortgage By way of Conditional Sale
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