LEGAL ASPECTS OF BANKING OPERATIONS JAIIB MODULE C

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LEGAL ASPECTS OF BANKING OPERATIONS
JAIIBMODULE C D06.11.06
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• 01..Under SARFAESI Act, 2002, the word Board is
  used to mean
• A .. Reserve Bank of India
• B .. Securities and Exchange Board of India
• C .. Debt Recovery Tribunal
• D .. Securitization Company

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• 02..Which pair is not correct
• A . Obligor Borrower
• B . Lender - Originator
• C . Sponsor Reserve Bank of India
• D . Secured Financial Institution
• Creditor -

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• 03..This evidences the purchasers undivided
  right, title and interest in the security.
• A . Ownership
• B . Transfer Right
• C . Right to possess and enjoy
• D . None of these

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• 04..Which one cannot be a Qualified Institutional
  Buyer
• A . Insurance company
• B . Bank
• C . A Partnership firm with financial experience
• D . A Foreign Institutional investor

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• 05.. Which statement is correct
• A . An asset reconstruction company need not be
  registered under Companies Act.
• B . A foreign institutional investor to be
  registered with RBI
• C . SARFAESI Act not applicable to RRBs
• D . Securitization Company has also to be
  registered with SEBI.

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• 06..Securitisation companies can set up separate
  trusts scheme wise and act as trustee for such
  schemes. The beneficiaries of such trusts are
• A . Trustees
• B . Borrowers
• C . Creditors
• D . None of them

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• 07..The Securitisation company or reconstruction
  company can acquire financial asset of any bank
  or financial institution by issuing
• A . Debenture
• B . Bond
• C . Any other security
• D . Any one of the above

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• 08..Identify the odd one (Debenture)
• A .A debenture for payment of consideration to be
  paid to the bank for acquisition of financial
  asset from it
• B .The rate of interest on debenture cannot be
  more than 1.5 above Bank rate
• C .Redemption period not beyond 6 years.
• D .Reconstruction company to issue debenture

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• 09..It has the owned funds not less than Rs.2
  crore or such other amount not exceeding 15
  of total financial assets acquired or to be
  acquired as the RBI may specify.
• A . Securitisation Company
• B . Reconstruction Company
• C . Both a b D . None of these

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• 10..The securitisation company or the
  reconstruction company can acquire financial
  asset of any bank or financial institution
• A . True B . False
• C . Incorrect D . Not True

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• 11.. Identify the correct one.
• A .Acquisition of funded assets to include take
  over of outstanding commitments, if any, of any
  bank, to lend further.
• B .If registration cancelled, Reconstruction
  company can appeal within 45 days
• C .Security receipt is in favour of investors
• D .Scheme wise/ asset wise separate accounts
  not required to be maintained

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• 12.. A securitisation company or reconstruction
  company can raise funds by way of deposits.
• A . Not False B.. Not True
• C.. Not applicable to Securitization company but
  to Reconstruction company
• D.. Not applicable to Reconstruction company but
  to Securitisation company

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• 13..Identify the incorrect one (Securitisation)
• A . Non performing asset is linked to overdue
  period which is 90 days now
• B .If the asset is taken for reconstruction
  limit is 7 years for reconstruction
• C .Capital Adequacy of 15 to be there
• D .While issuing security receipts necessary
  disclosures to be made without fail

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• 14..The date agreed upon by the secured
  creditors representing not less than
  three-fourth in value of the amount outstanding
  on such date.
• A . Agreement Date B.. Agreed Date
• C.. Record Date D.. Due date

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• 15.. Which one is not coming under
  Securitisation.
• A . Hypothecation of Stock
• B . Assignment of Book Debts
• C . Mortgage of Land
• D . Pledge of Goods

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• 16..In case of sale of immovable property the
  borrower should be given notice about the sale
  before
• A . 60 days B. 2 months
• C . 90 days D. None of these

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• 17.. An authorized officer has finalised the sale
  of property for Rs. 10 lacs. Then the purchaser
  has to remit
• A . The amount immediately
• B . Within 15 days
• C . 25 of the offer price
• D . Nothing at once

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• 18.. The authorized officer can
• A . Accept the Offer
• B . Confirm the sale
• C . Issue Sale Certificate
• D . Perform all the above

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• 19.. Securitisation (identify the odd one)
• A. For taking possession and then sell the
  immovable property (under mortgage)
• court permission required.
• B. Court permission not required
• C. The authorised officer to publish the
  possession notice
• D. In two leading newspapers

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• 20..An appeal to the Appellate Tribunal is to be
  preferred within
• One month from the date of receipt of the order
  of Debts Recovery Tribunal.
• 30 days
• 60 days
• None of these

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• 21.. A record to be maintained at the Central
  Registrar at their head office to record
  transactions relating to
• A . Securitization of financial assets
• B . Reconstruction of financial assets
• C . Creation of security interests
• D . All the above

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• 22.. When any security interest is registered
  with the Central Registrar is modified, the same
  is required to be filed before Central Registrar
  within
• A . 30 days B. One month
• C . 45 days D. 60 days

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• 23.. If a reconstruction company fails to comply
  with any of the directions of RBI then the
  company is punishable with fine not exceeding
• A . Rs.1 lac for the default.
• B . Rs. 5000/- per day
• C . Rs 10000/- per day
• D . Rs. 5 lacs

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• 24..Provisions of SARFAESI ACT not applicable for
• A . A pledge of movable assets
• B . Hire purchase or lease in which no security
  interest has been created
• C . Any security interest created in
  agricultural land
• D . All the above

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• 25..A bank has realized part of the liability by
  using Securitisation procedure. The balance
  outstanding is Rs.12 lacs without any tangible
  security.
• A . Bank will have to forego
• B . Bank can approach DRT
• C . Bank cannot approach any court
• D . Bank will have to write off

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• 26.. After recovery through Securitisation
  process for balance outstanding to recover the
  bank can approach competent court provided
• A . Limitation period is not over
• B . Debt is time barred
• C . Limitation period has not been extended
• D . Borrower agrees

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• 27..Banking Ombudsman review authority is
• Ombudsman himself
• Awarding Official
• RBI Executive Director
• None of them

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• 28..Banking Ombudsman which is incorrect
• A . Provided with a Secretariat
• B . Cost of Secretariat to be borne by RBI
• C . Remuneration to be decided by RBI
• D . He can not act as an arbitrator

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• 29.Banking ombudsman- identify odd one
• A . Non- adherence of prescribed working hours by
  branches
• B . Observance of RBI directives on interest
  rates
• C . Failure to pay guarantee amount
• D . Non- issue of drafts to non customers

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• 30..Banking Ombudsman as an arbitrator to follow
  the scheme as well as the provisions of
• A . Banking Regulation Act
• B . Reserve Bank of India Act
• C . Arbitration Act
• D . None of these

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• 31..DRT Act not applicable to
• A . Nationalized Banks
• B . Regional Rural Banks
• C . State Bank of India
• D . None of these

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• 32..Under DRT Act, a Recovery Officer is one who
  is
• A . Appointed by the respective Banks
• B . Also known as Authorized Officer
• C . Appointed by the Central Government
• D . Also called Presiding Officer

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• 33..Which one is incorrect (DRT)
• A . An application for execution of the decree of
  foreign court cannot be entertained by Debt
  Recovery Tribunal.
• B .The Limitation Act applies for DRT cases
• C .Other Bank can join the application.
• D .Tribunal to deal with cases above Rs,10 lacs

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• 34..Identify the correct mode of recovery of
  debts (DRT)
• A . Attachment and sale of movable property
• B . Sale of immovable property of the defendant
• C .Arrest of the defendant and his detention in
  prison
• D .Any one of the above

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• 35.. The recovery certificate which has been
  issued requires rectification of arithmetical
  mistake. It can be done by
• A . The Banker himself
• B . The Competent Court
• C . The Officer of the DRT
• D . None of these persons

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• 36..Any person aggrieved by the order of Recovery
  Officer may appeal to the Tribunal within
• A . 15 days B . 30 days
• C . 30 days from the date of the order
• D . 30 days from the date of receipt of the copy
  of the order.

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• 37..According to Bankers Books Evidence Act
  identify the correct one.
• A.. The Act extends to the whole of India
  including the State of Jammu Kashmir
• B .For a Computer Print out certificate by the
  Principal Accountant is not acceptable
• C .The certified copy need not have any
  declaration.
• D . The Act is not applicable to the State of
  Jammu Kashmir

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• 38..For inspection of books by order of court the
  same has to be served on the bank
• A . Any time before banking business hours
• B . Any of its branches
• C . At least a week before the same is to be
  obeyed
• D . None of these

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• 39...A dispute where the person against whom
  complaint has been made, denies or disputes the
  allegations contained in the complaint refers to
• A . Consumer Dispute
• B . Customer Dissatisfaction
• C . Consumer Complaint
• D . Deficiency in Customer Service

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• 40..Under the Consumer Protection Act, who is not
  treated as a Person
• A . An unregistered Firm
• B . A Registered Firm
• C . A Co-operative Society
• D . None of the above

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• 41..J applied for a loan which the bank
  considered. However J went to the consumer forum
  claiming that the loan was inadequate. Then the
  consumer forum
• A . Can direct the bank to give balance loan
• B . Cannot direct the bank C. Can entertain the
  consumers request
• D . None of these

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• 42..Which one is correct
• A .. The State Consumer Protection Council to
  meet at least two times every year.
• B .. The District Consumer Protection Council to
  meet at least one time every year.
• C .. The Central Consumer Protection Council to
  meet at least two times in a year.
• D ..The highest council is the National Council

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• 43..Identify the odd one (Consumer Disputes
  Redressal Agencies)
• A . National Commission
• B . District Forum
• C . Central Council
• D . State Commission

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• 44..Every member of the District Forum to hold
  office for a term of three years or up to the
  age of sixty-five years, whichever
• is earlier.
• A . True B . False
• C . Partially True D . It is not 3 years
• but 5
  years

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• 45..An appeal against the District Forums order
  has to be filed before State Commission within 30
  days. In case of monetary involvement the person
  filing appeal
• A.. Need not remit any amount
• B.. Has to remit 50 of the amount ordered
• C .. Rs.20,000
• D .. B C which ever is less

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• 46..For filing any complaint before a District
• Forum, State Commission or the National
• Commission the limitation period from the
• date of cause of action is
• A .. 1 year B.. 2 years
• C .. 3 years D.. No limitation period

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• 47..An Agreement involving 3 persons is called
• A .. Unilateral Agreement
• B .. Bilateral Agreement
• C .. Multi person Agreement
• D .. None of these

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• 48.. It is the delivery of goods by one person to
  another for some purpose . When the purpose is
  accomplished, the goods are to be returned or
  otherwise disposed of according to the direction
  of the person delivering them.
• A . Hypothecation B . Bailment
• C . Assignment D . Mortgage

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• 49.. Under Pledge the pledgee is the
• A . Debtor
• B . Creditor
• C . Borrower
• D . None of them

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• 50..Termination of Agency is possible
• A . Principal revoking his authority
• B . Agent dies during the agency period
• C . Principal is adjudicated as insolvent
• D . All the above

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• 51.. Which one does not pertain to sale
• A . The risk in goods is with the buyer
• B . The Seller can only sue for damages
• C . It is a contract in which the parties have
  already performed their part
• D . The ownership of goods have already passed
  irrespective of whether the goods are delivered
  or not

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• 52..It is a stipulation collateral to the main
  purpose of the contract. The breach of such a
  stipulation gives rise to a claim for damages
  only.
• A . Condition B . Warranty
• C . Guarantee D . Stipulation

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• 53.. The unpaid seller (which one is not the
• Right)
• A . Right not to withhold delivery of goods
• B . Right of re-sale
• C . A lien on the goods for the price while
• he is in possession of them
• D . Right to stop goods in transit

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• 54.. This type of partnership can be dissolved by
  any partner by giving notice in writing to all
  the other partners of his intention to dissolve
  the firm.
• A . Ordinary Partnership
• B . Partnership at Will
• C . Special Partnership
• D . Particular Partnership

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• 55..The implied authority of a partner does not
  empower him to
• A . Open a banking account on behalf of the firm
  in his own name
• B . Withdraw a suit filed on behalf of the firm
• C . Admit any liability in a suit against him
• D . Enter into partnership on behalf of the firm

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• 56.. A minor who was admitted to receive the
  benefits of a firm, on attaining majority and
  becoming a partner
• A .His rights and liabilities as a minor continue
  upto the date on which he becomes a partner
• B .He is personally liable to 3rd parties for
  all the acts of the firm done
• C .Since he was admitted to the benefits of the
  firm
• D .All the above are applicable

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• 57..Which one is incorrect
• A . Registration of a firm is optional
• B . Registration of a company is not compulsory
• C . A firm does not have a perpetual existence
• D . Common seal is not applicable to a firm

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• 58.. Identify the odd one (Companies)
• A . A private company can accept deposits only
  from its members or directors
• B . For Private company minimum issued capital
  has to be Rs.1.oo lac
• C . Minimum 3 directors required for Public Ltd
  company
• D . Memorandum of Association is a Public document

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• 59..Which does not require registration?
• A . Pledge of company assets
• B . Prospectus
• C . Book Debts
• D . Any share in a ship

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• 60..Who is an authorised person under FEMA
• A . Any bank
• B . Authorized Money Changer
• C . Authorised Dealer
• D . All the above

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• 61.. The mortgagor agrees that in the event of
  his failing to pay according to his contract,
  the mortgagee has the right to sell the mortgaged
  property and recover his dues. Identify the
  mortgage
• A . Simple B. Usufructuary
• C . Conditional Sale D. English

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• 62..On payment of the money the mortgagee will re
  transfer the property to the mortgagor. Which is
  that mortgage
• Equitable
• Simple
• English
• Conditional Sale

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• 63..Which statement is true
• A . Simple Mortgage has to be created in a
  Notified Area
• B . English Mortgage Private Sale is not there
• C . Equitable Mortgage Registration is not
  applicable
• D . Simple Mortgage Deed to be registered within
  30 days of execution

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