module b 2 chapter 5

8/12/2019 Module b 2 Chapter 5

http://slidepdf.com/reader/full/module-b-2-chapter-5 1/46

1. Which of the followings forms the part of lending principles ? Marks: 2+

0.5-

Safet mone lent. !i"#idit

$rofita%ilit

$#rpose &ll of these

'he (orrect &nswer is : &ll of these

)o# did not answer the "#estion. *planation :

undefined Mod#le : Mod#le ,

(hapter : (hapter5 2. n appraisal of 'erm loan proposal the following aspects are to %e looked

in : Marks: 2+ 0.5-

Managerial (ompetence 'echnical /easi%ilit

*conomic ia%ilit /inancial ia%ilit

&ll of the a%oe'he (orrect &nswer is : &ll of the a%oe



(hapter : (hapter5 . What are the cardinal principles of lending ? Marks: 2+ 0.5-

Safet

Sec#rit

!i"#idit $rofita%ilit

&ll of these'he (orrect &nswer is : &ll of these

)o# did not answer the "#estion.

*planation :undefined

Mod#le : Mod#le , (hapter : (hapter5

3. n ,anking pariance credit risk refers to : Marks: 2+ 0.5-

,anker4s defa#lt in releasing credit to a %orrower

defa#lt of a %anker in maintaining S! defa#lt of a %orrower in repament of loan &ll of the a%oe

6one of the a%oe'he (orrect &nswer is : defa#lt of a %orrower in repament of loan


undefined




5. While sanctioning loans the %ank : Marks: 2+ 0.5-

follows laid down principles of lending is not s#pposed to o%sere an principles of lending

has to consider loan application on the %asis of deposit gien % theprospectie %orrower &ll of the a%oe

7%8 and 7c8

'he (orrect &nswer is : follows laid down principles of lending )o# did not answer the "#estion.



9. Most f#ndamental aspects which the %ank has to consider whilesanctioning the loans in terms of principles of fo#nding lending are :

Marks: 2+ 0.5-

person and his moral integrit

p#rpose amo#nt period of loan and repament eperience

sec#rit &ll of the a%oe

'he (orrect &nswer is : &ll of the a%oe )o# did not answer the "#estion.



. & %ank sho#ld pa attention to which of the following parts while

sanctioning loans ? Marks: 2+ 0.5-

'he adance sho#ld earn reasona%le ield. 'he adance sho#ld raise standard of liing of the %orrower

Mone adanced sho#ld earn reasona%le ield to the %ank and is repaid in

time %esides raising liing standard of the %orrower. ,ank not to consider an thing.

6one of the a%oe'he (orrect &nswer is : Mone adanced sho#ld earn reasona%le ield to

the %ank and is repaid in time %esides raising liing standard of the%orrower.


*planation :undefined Mod#le : Mod#le ,

(hapter : (hapter5 ;. ,ank can red#ce risk in lending to a %orrower : Marks: 2+ 0.5-

% o%taining ade"#ate sec#rit

% ens#ring that there will %e no pro%lem of li"#idit with the %orrower % ens#ring that there will %e no defa#lt on acco#nt of lack of li"#idit



and lack of willingness to pa on the part of %orrower &ll of the a%oe

6one of the a%oe'he (orrect &nswer is : % ens#ring that there will %e no defa#lt on

acco#nt of lack of li"#idit and lack of willingness to pa on the part of%orrower

)o# did not answer the "#estion. *planation :undefined

Mod#le : Mod#le ,

(hapter : (hapter5 <. /inancial risk analsis inoles : Marks: 2+ 0.5-

&nalsis of financial standing of a %orrower

8 &nalsis of performance of a %orrower #nder certain select financialparameters

&nalsis of past track record of commitments of a %orrower & st#d of financial position of g#aranter

6one of the a%oe

'he (orrect &nswer is : 8 &nalsis of performance of a %orrower #ndercertain select financial parameters )o# did not answer the "#estion.



10. !i"#idit with a %anker means : Marks: 2+ 0.5-

(ash on hand aaila%le with him (ash and %ank %alance

'he leel of conerti%le 7to cash8 short term assets aaila%le with a %ank

&ll of the a%oe 6one of the a%oe

'he (orrect &nswer is : 'he leel of conerti%le 7to cash8 short termassets aaila%le with a %ank


undefined


11. 'he cardinal principles of %ank lending are : Marks: 2+ 0.5-

Safet Sec#rit

!i"#idit $rofita%ilit

&ll of these'he (orrect &nswer is : &ll of these



(hapter : (hapter5



12. (redit operations of %anking sstem are generall g#ided % : Marks: 2+

0.5-

=irecties of , nstr#ction of >ot.

,ank4s own polic

&ll of these 6one of these

'he (orrect &nswer is : &ll of these



(hapter : (hapter5 1. , translates its iews on econom into affirmatie actions thro#gh

changes in the Marks: 2+ 0.5-

(redit polic Monetar $olic

(redit and Monetar polic &ll of these

6one of the a%oe'he (orrect &nswer is : (redit and Monetar polic



(hapter : (hapter5 13. esere ,ank reiews credit policin a ear. Marks: 2+ 0.5-

once

thrice@@in Aan. Ma Septem%er eer er

fo#r times eer "#arter twice &pril and Bcto%er

6one of the a%oe'he (orrect &nswer is : twice &pril and Bcto%er




15. n the case of hpothecation adances statements of stocks are takenperiodicall from the %orrowers with a declaration regarding their clear title

to the goods and the correctness of the "#antit "#alit and al#ation

thereof. 'hese declarations : Marks: 2+ 0.5-

are re"#ired to %e signed % the persons a#thorised to operate on the

acco#nt. %ind the %orrowers and form the %asis of the hpothecation adane

are #sed to control that the drawings in the acco#nt are coered %s#fficient stocks and that ade"#ate margin is maintained







19. &s the goods #nder Cpothecation remain in the possession of the%orrower care has to %e eercised to see that the %ank4s sec#rit iscomplete ade"#ate safe and aaila%le at all times. /or this p#rpose :

Marks: 2+ 0.5-

an effectie s#perision oer the goods and the position of the %orrowersis a%sol#tel necessar

periodical inspection of goods is one of the was of s#perising theadance

the %orrower4s %ooks of acco#nts sho#ld %e scr#tiniDed and reconciledwith the statements s#%mitted





1. t is adisa%le to hae the %ank4s name %oards prominentl displaed onthe godowns containing the hpothecated goods to : Marks: 2+ 0.5-

o%iate the possi%ilit of the same goods %eing hpothecated to another

%ank aoid a possi%le attempt %eing made % the eceier in the eent of the

%orrower4s insolenc to treat the %orrower as the 4rep#ted owner4 of the

hpothecated goods ,oth of the a%oe

6one of the a%oe &n of the a%oe

'he (orrect &nswer is : ,oth of the a%oe



(hapter : (hapter5 1;. $eriodical inspection of the goods is one of the was of s#perising the

adance. =#ring a isit the inspecting officer sho#ld ascertain that :

Marks: 2+

0.5-

there is satisfactor t#rnoer of stocks the goods forming the %ank4s sec#rit are paid for % the %orrowers

the hpothecated stock is not oer-al#ed &ll of the a%oe

6one of the a%oe'he (orrect &nswer is : &ll of the a%oe






1<. Cpothecation is known as : Marks: 2+ 0.5-

a legal transaction % which goods ma %e made aaila%le as sec#rit fora loan or adance or de%t transfer or ownership of goods to the lender

conditional sale


'he (orrect &nswer is : a legal transaction % which goods ma %e madeaaila%le as sec#rit for a loan or adance or de%t



(hapter : (hapter5

20. Which of the following sec#rities are not the s#%Eect matter ofhpothecation ? Marks: 2+ 0.5-

aw material /inished prod#cts

$lant and Machiner Share and =e%ent#res

6one of the a%oe'he (orrect &nswer is : Share and =e%ent#res


undefined


21. Cpothecation is created when : Marks: 2+ 0.5-

loans are re"#ired for p#rchase of machiner for prod#ction adances are re"#ired for ac"#isition of raw materials for processing and

conersion into finished goods

adances gien for p#rchase of tools e"#ipment ehicle etc. adances for raising to crops




(hapter : (hapter5 22. n case of defa#lt in a hpothecated adance what are the alternaties

aaila%le to the %anker to protect its interest ? Marks: 2+ 0.5-

a8 ,ank can take possession of goods with the consent of the %orrower. tis adisa%le to get a doc#ment of pledge signed % the %orrower after the

goods are taken in %ank4s possession. 'he goods can then %e sold after



giing a legal notice. %8 &n application has to %e made to the co#rt for appointment of a

eceier to take charge of stocks. c8 & s#it is to %e filed and application has to made to the co#rt for

attachment of the goods %efore E#dgment. d8 &n one of the a%oe

e8 6one of the a%oe'he (orrect &nswer is : d8 &n one of the a%oe )o# did not answer the "#estion.

*planation :


(hapter : (hapter5 2. & floating charge is descri%ed as an e"#ita%le charge on the assets for

the time %eing of a going concern. t crstalliDes as a specific charge in thefollowing case : Marks: 2+ 0.5-

Fpon commencement of winding #p proceedings of a compan.

When a eceier is appointed % the co#rt or % the lender #nder the

powers contained in the de%ent#res. When the terms of de%ent#res are not f#lfilled % the %orrower and thelender takes some steps to realiDed the de%ts.

&n one of the a%oe 6one of the a%oe

'he (orrect &nswer is : When the terms of de%ent#res are not f#lfilled %the %orrower and the lender takes some steps to realiDed the de%ts.



(hapter : (hapter5

23. When a compan is #nder li"#idation a floating charge on its assetscreated within 12 months preceding the commencement of li"#idation

proceedings is oid ecept : Marks: 2+ 0.5-

a8 to the etent of the amo#nt of cash act#all paid to the compan at thetime or after the creation of charge in consideration thereof with interest

%8 When it is proed that the compan was solent immediatel after the

creation of floating charge c8 &n one of the a%oe

d8 6one of the a%oe e8 &ll of the a%oe

'he (orrect &nswer is : c8 &n one of the a%oe )o# did not answer the "#estion.



25. & mortgage is the transfer of an interest in specific immoa%le propertfor the p#rpose of sec#ring the pament of mone adanced : Marks: 2+ 0.5-

% wa of loan

an eisting or f#t#re de%t



or performance of an engagement which ma gie rise to a pec#niarlia%ilit


'he (orrect &nswer is : or performance of an engagement which ma gierise to a pec#niar lia%ilit


Mod#le : Mod#le ,

(hapter : (hapter5 29. mmoa%le propert incl#des land %enefits that arise o#t of land and

things attached to the earth. 4&ttached to the earth4 means : Marks: 2+ 0.5-

a8 rooted in the earth as in the case of trees and shr#%s %8 em%edded in the earth as in the case of walls or %#ildings

c8 attached to what is so em%edded for the permanent %eneficialenEoments of that to which it is attached

d8 &ll of the a%oe

e8 6one of the a%oe'he (orrect &nswer is : d8 &ll of the a%oe )o# did not answer the "#estion.



2. 'he propert in which the interest is so#ght to %e transferred m#st %ecapa%le of identification % description with regard to : Marks: 2+ 0.5-

location

area

%o#ndaries &ll of the a%oe

7a8 and 7%8'he (orrect &nswer is : %o#ndaries


undefined


2;. Where witho#t deliering possession of the mortgaged propert themortgager %inds himself personall to pa the mortgage mone and agrees

epressl or impliedl that in the eent of his failing to pa according to hiscontract the mortgage shall hae a right to ca#se the mortgaged propert

to %e sold and the proceeds of sale to %e applied so far as ma %e necessarin pament of the mortgage mone the transaction is called : Marks: 2+ 0.5-

Simple mortgage

*nglish mortgage *"#ita%le mortgage

&nomalo#s mortgage &ll of the a%oe

'he (orrect &nswer is : Simple mortgage





(hapter : (hapter5 2<. 'he words 4ca#se the mortgaged propert to %e sold 4 impl that :

Marks: 2

+

0.5

-

the mortgaged has to power to sell the propert witho#t the interention

of the co#rt the mortgagee can appoint a representatie who has the power to sell the

propert he mortgagee has no power to sell the propert witho#t the interention

of the co#rt 6one of the a%oe

&ll of the a%oe'he (orrect &nswer is : he mortgagee has no power to sell the propert

witho#t the interention of the co#rt )o# did not answer the "#estion.



0. Where the mortgager %inds himself to repa the mortgage mone on acertain date and transfers the mortgaged propert a%sol#tel to the

mortgagee s#%Eect to the proiso that the mortagee will retransfer it to themortgager #pon repament of the mortgage mone as agreed the

transaction called : Marks: 2+ 0.5-

Simple mortgage *nglish mortgage

*"#ita%le mortgage

Mortgage % conditional sale 6one of the a%oe

'he (orrect &nswer is : *nglish mortgage )o# did not answer the "#estion.

*planation :


(hapter : (hapter5 1. 'he reiew carried d#ring &pril is called : Marks: 2+ 0.5-

nitial reiew

Slack season monetar and credit polic

&pril reiew &ll of the a%oe 6one of the a%oe

'he (orrect &nswer is : Slack season monetar and credit polic )o# did not answer the "#estion.





2. 'he reiew carried d#ring Bcto%er is called : Marks: 2+ 0.5-

Mid term reiew Slack season polic

,as season monetar and credit polic &n of theses

6one of the a%oe'he (orrect &nswer is : ,as season monetar and credit polic )o# did not answer the "#estion.

*planation :


(hapter : (hapter5 . While sanctioning loans and adances to the %orrowers the %ank :

Marks: 2+ 0.5-

need not to follow an principle

sho#ld follow laid down principles of lending sho#ld adances on the %asis of deposits

sho#ld lend as per the wish of the %ranch manager 6one of the a%oe

'he (orrect &nswer is : sho#ld follow laid down principles of lending )o# did not answer the "#estion.



3. 'he essentials of good lending are that : Marks: 2+ 0.5-

it is need %ased it is prod#ction and emploment oriented

it generates income to the %orrower and ens#res timel repament of %an

d#es 7a8 and 7c8





5. deal %orrower sho#ld posses the following : Marks: 2+ 0.5-

(haracter

(apacit (apital &ll of the a%oe



undefined




9. While considering a loan proposal the lending %anker sho#ld amongstothers also take into consideration : Marks: 2+ 0.5-

Marketa%ilit

Managerial a%ilit Spread &ll of the a%oe

6one of the a%oe




. & %anker can red#ce risk in lending : Marks: 2+ 0.5-

% o%taining 200G collateral sec#rit.

% o%taining 100G collateral sec#rit in addition to prime sec#rit. % ens#ring that %orrower will not hae li"#idit pro%lem d#ring theco#rse of %#siness.

% ens#ring that the %orrower will not defa#lt in repament of loan onacco#nt of non-aaila%ilit of ade"#ate li"#idit and lack of willingness to

pa. &ll of the a%oe

'he (orrect &nswer is : % ens#ring that the %orrower will not defa#lt inrepament of loan on acco#nt of non-aaila%ilit of ade"#ate li"#idit and

lack of willingness to pa. )o# did not answer the "#estion.

*planation :


(hapter : (hapter5 ;. n %anking reference credit risk refers to : Marks: 2+ 0.5-

defa#lt of a %anker in sanctioning credit limits to the %orrower

defa#lt of a %anker in keeping s#fficient cost at %ranch leel

defa#lt % a %orrower in repament of %anks d#es &ll of the a%oe

6one of the a%oe'he (orrect &nswer is : defa#lt % a %orrower in repament of %anks d#es



(hapter : (hapter5 <. /inancial risk analsis inoles : Marks: 2+ 0.5-

&nalsis of financial net worth of a prospectie %orrower

&nalsis of past track record of %orrowers commitment &nalsis of performance of a %orrower #nder financial parameters




'he (orrect &nswer is : &nalsis of performance of a %orrower #nderfinancial parameters


undefined Mod#le : Mod#le , (hapter : (hapter5

30. What are the fie 4(4s which a %orrower sho#ld possess ? Marks: 2+ 0.5-

(apital and (ollateral

(onditions &ll of these

6one of the a%oe'he (orrect &nswer is : &ll of these


undefined

Mod#le : Mod#le , (hapter : (hapter5 31. &t the o#tright credit facilities etended % the %ank are : Marks: 2+ 0.5-

/#nd %ased credit facilities

6on-f#nd %ased credit facilities ,oth 7a8 and 7%8

6one of the a%oe &n one of the a%oe

'he (orrect &nswer is : ,oth 7a8 and 7%8 )o# did not answer the "#estion.

*planation :


(hapter : (hapter5 32. /#nd %ased credit facilities are those facilities where : Marks: 2+ 0.5-

the cash o#tflow is immediate

no cash o#tflow

cash o#tflow ma or ma not take place &ll of the a%oe

6one of the a%oe'he (orrect &nswer is : the cash o#tflow is immediate



(hapter : (hapter5 3. n non-f#nd %ased credit facilities : Marks: 2+ 0.5-

the cash o#tflow is immediate

cash o#tflow ma or ma not take place. f it takes place that it is notimmediate. t wo#ld %e at f#t#re date

,oth 7a8 and 7%8 a%oe



&n one of the a%oe 6one of the a%oe

'he (orrect &nswer is : cash o#tflow ma or ma not take place. f ittakes place that it is not immediate. t wo#ld %e at f#t#re date



33. 'he credit facilities 7%oth f#nd %ased and non-f#nd %ased8 are proided

to finance : Marks: 2+ 0.5-

fied assets c#rrent assets

non-%#siness assets ,oth 7a8 and 7%8

6one of the a%oe'he (orrect &nswer is : ,oth 7a8 and 7%8



(hapter : (hapter5 35. /#nd %ased credit facilities incl#de : Marks: 2+ 0.5-

'erm loan for ac"#isition of fied assets.

(ash credit facilit ,ill p#rchase facilit

Berdraft facilit &ll of the a%oe

'he (orrect &nswer is : &ll of the a%oe



(hapter : (hapter5 39. 6on-f#nd %ased credit facilities incl#de : Marks: 2+ 0.5-

!etter of credit !etter of g#arantee

&cceptance of %ills on %ehalf of c#stomer =eferred pament g#arantees




(hapter : (hapter5 3. (ash credit facilit against merchandise 7i.e. goods8 are allowed % wa

of : Marks: 2+ 0.5-

Cpothecation



$ledge !ien

7a8 and 7%8 6one of these

'he (orrect &nswer is : 7a8 and 7%8 )o# did not answer the "#estion.


(hapter : (hapter5

3;. When two or more %anks Eointl etend credit facilities to a %orrowers#ch tpe of adances are known as : Marks: 2+ 0.5-

(ollectie adances

(onsorti#m adances ent#re financing

&ll of these 6one of the a%oe

'he (orrect &nswer is : (onsorti#m adances



3<. esere ,ank of ndia has gien freedom to the participating %anks inconsorti#m to frame gro#nd r#les for the consorti#m arrangements s#ch as

: Marks: 2+ 0.5-

minim#m and maim#m share of each %ank n#m%er of participating %anks

r#les for entrHeist from the consorti#m




Mod#le : Mod#le ,

(hapter : (hapter5 50. 'he %anks in the consorti#m ma frame their own r#les relating to :

Marks: 2+ 0.5-

sanction of adhocHadditional credit facilities in eigencies % leader

%ankHother %anks

the fees or charges to %e paid to the leader %ank towards sericesproided % the leader %ank grant of facilit % a non-mem%er %ank to the %orrower







51. Sndicated credit means : Marks: 2+ 0.5-

an agreement %etween two or more lending instit#tions to proide thecredit facilities to a %orrower on the %asis of common loan doc#mentation

a facilit which is granted to a Sndicate of stock %rokers credit facilities sanctioned % Sndicate ,ank &ll of the a%oe

6one of the a%oe

'he (orrect &nswer is : an agreement %etween two or more lendinginstit#tions to proide the credit facilities to a %orrower on the %asis of

common loan doc#mentation )o# did not answer the "#estion.



52. ,ridge loans refer to : Marks: 2+ 0.5-

loans granted to constr#ction companies for constr#ction of %ridges loan granted to $W= for constr#ction of %ridges oer the riers

interim finance allowed % %anks to their c#stomers pendingdis%#rsement of term loans % financial instit#tions.


'he (orrect &nswer is : interim finance allowed % %anks to theirc#stomers pending dis%#rsement of term loans % financial instit#tions.


undefined


5. & cash credit is an arrangement #nder which a %ank permits hisc#stomer : Marks: 2+ 0.5-

to withdraw cash on credit terms

to %orrow mone #pto a predetermined limit against some sec#rities

to #se mone for long term inestment &ll of the a%oe

6one of the a%oe'he (orrect &nswer is : to %orrow mone #pto a predetermined limit

against some sec#rities )o# did not answer the "#estion.



53. (ash credit is a r#nning acco#nt similar to c#rrent acco#nt with theadditional adantage that the part : Marks: 2+ 0.5-

is iss#ed with %ea#tif#l printed che"#e %ook

cannot draw the cash once the acco#nt comes in credit



is sanctioned a limit #pto which he draws f#nds oer and a%oe his owncredit %alance in the acco#nt


'he (orrect &nswer is : is sanctioned a limit #pto which he draws f#ndsoer and a%oe his own credit %alance in the acco#nt


Mod#le : Mod#le ,

(hapter : (hapter5 55. n cash credit acco#nt limit is sanctioned to the c#stomer against :

Marks: 2+ 0.5-

pothecation of stocks

$ledge of stocks and Misc. sec#rities &ssignment of ,ook =e%ts and actiona%le claims

6one of the a%oe &ll of the a%oe




59. (ash credit adance are repaa%le : Marks: 2+ 0.5-

on demand on clos#re of %orrower4s %#siness

after 5 ears at the sweet will of the %orrower

6one of the a%oe

'he (orrect &nswer is : on demand )o# did not answer the "#estion.


Mod#le : Mod#le ,

(hapter : (hapter5 5. nterest on cash credit acco#nts are charged on : Marks: 2+ 0.5-

the limit sanctioned

the %asis of dail prod#cts of de%it %alance the maim#m de%it o#tstanding d#ring the month

the minim#m o#tstanding %etween 10th and last da of the month

6one of the a%oe'he (orrect &nswer is : the %asis of dail prod#cts of de%it %alance )o# did not answer the "#estion.



5;. n parlance of cash credit facilit the term =.$. refers to : Marks: 2+ 0.5-



6one of the a%oe =oc#ments against pament

=rawings power which means the maim#m amo#nt #pto which the partcan withdraw

&n of the a%oe 6one of the a%oe

'he (orrect &nswer is : =rawings power which means the maim#mamo#nt #pto which the part can withdraw )o# did not answer the "#estion.

*planation :


(hapter : (hapter5 5<. =rawings power is arried : Marks: 2+ 0.5-

% ded#cting stip#lated margin from the al#e of the sec#rities offered %

the part for cash credit limit on the goodwill enEoed % the part in %#siness circle

at the merc of %anker

on the %asis of limit sanctioned to the %orrower 6one of the a%oe'he (orrect &nswer is : % ded#cting stip#lated margin from the al#e of

the sec#rities offered % the part for cash credit limit )o# did not answer the "#estion.



90. Which statement is correct in respect of cash credit acco#nts ?Marks: 2+ 0.5-

!imit is fied and drawing power is aria%le

=rawing power is fied and limit is aria%le. ,oth drawings power and limit are fied.

,oth limit and drawings power are aria%le. 6one of the a%oe

'he (orrect &nswer is : !imit is fied and drawing power is aria%le



(hapter : (hapter5 91. &ll sec#rities charged to %ank m#st %e ins#red with 4,ank cla#se4

generall ins#rance is taken to coer following risks : Marks: 2+ 0.5-

/ire 'heft or ,#rglar

Strike riot an ciil commotion &ll of these







92. &n oerdraft means : Marks: 2+ 0.5-

allowing adance against the sec#rit of merchandise allowing the part to oerdraw his acco#nt credit facilit to a part for his short term re"#irement

&ll of the a%oe

6one of the a%oe'he (orrect &nswer is : allowing the part to oerdraw his acco#nt



(hapter : (hapter5 9. &n oerdraft is repaa%le : Marks: 2+ 0.5-

on demand after three ears of its aailment no need to repa

as per the wish of the c#stomer 6one of the a%oe

'he (orrect &nswer is : on demand )o# did not answer the "#estion.



93. & clean oerdraft is one which is allowed to a c#stomer % the %ank :Marks: 2+ 0.5-

on the personal credit of the c#stomer

as temporar accommodation to meet gen#ine and s#dden re"#irementsof the part for which no arrangement was made in adance

witho#t an tangi%le sec#rit

generall an #nsec#red in nat#re &ll of the a%oe



Mod#le : Mod#le ,

(hapter : (hapter5 95. which of the followings is the correct answer in respect of credit facilitagaint %ills ? Marks: 2+ 0.5-

=emand ,ills whether clean or doc#mentar are p#rchased % the

%anks. Fsance %ills are disco#nted % the %ank

mmediate credit is gien to the c#stomers acco#nt



&ll of the a%oe 7a8 and 7%8



Mod#le : Mod#le , (hapter : (hapter5 99. ,anks do not p#rchaseHdisco#nt : Marks: 2+ 0.5-

=oc#mentar ,ills (lean ,ills

7a8 and 7%8 &ccommodation ,ills

Fsance ,ills'he (orrect &nswer is : &ccommodation ,ills


undefined

Mod#le : Mod#le , (hapter : (hapter5 9. While p#rchasing of demand doc#mentar %ills and disco#nting of

#sance doc#mentar %ills s#pported % lorr receipts the lorr receiptssho#ld %e iss#ed % : Marks: 1+ 0.25-

the transport compan which is on the approed list of ,&

the transport compan m#st hae 6ational $ermit the transport compan sho#ld hae %rand new tr#cks

the transport compan sho#ld %e haing fleck of at least 100 tr#ckHlorretc.

&ll of the a%oe

'he (orrect &nswer is : the transport compan which is on the approedlist of ,&



(hapter : (hapter5

9;. When a fied amo#nt is gien to the %orrower as loan which isrepaa%le on demand or in periodical instalment s#ch credit facilit is

known as : Marks: 2+ 0.5-

!oan 'erm loan

$acking credit (ash credit

Berdraft'he (orrect &nswer is : !oan



(hapter : (hapter5



9<. & demand loan is one which is repaa%le : Marks: 2+ 0.5-

at sight in instalments

on demand % the %ank at the will of %orrower

6one of the a%oe.'he (orrect &nswer is : on demand % the %ank )o# did not answer the "#estion.

*planation :


(hapter : (hapter5 0. =emand loan are generall sanctioned against : Marks: 2+ 0.5-

Stock *change and >ot. Sec#rities

,ank4s own term deposits 6ational Saings (ertificatesHIisan ikas $atra

!( policies

&ll of the a%oe'he (orrect &nswer is : &ll of the a%oe )o# did not answer the "#estion.



1. & che"#e %ook is not iss#ed in case of : Marks: 2+ 0.5-

Berdraft acco#nt (ash credit acco#nt

!oan acco#nt

&ll of these 6one of the a%oe

'he (orrect &nswer is : &ll of these )o# did not answer the "#estion.


Mod#le : Mod#le ,

(hapter : (hapter5 2. 6o de%its to loan acco#nt are permitted s#%se"#ent to the initial

adance ecept interest ins#rance charges and other misc. charges %eca#se: Marks: 2+ 0.5-

loan acco#nts are not r#nning acco#nts as cash credit acco#nts

the %ank will %e p#t to a lot of inconenience d#e to increased work the r#le in (laton4s case will appl


'he (orrect &nswer is : loan acco#nts are not r#nning acco#nts as cashcredit acco#nts


undefined




. !oans are generall allowed : Marks: 2+ 0.5-

for meeting operating epenses of an ind#strial entit for ac"#isition of fied assets which sho#ld hae #tilit for a period of

time to the %orrower to meet working capital re"#irement of the #nit &ll of the a%oe

&n one of the a%oe

'he (orrect &nswer is : for ac"#isition of fied assets which sho#ld hae#tilit for a period of time to the %orrower



(hapter : (hapter5 3. 9;Which of the following tpes of credit facilities are allowed for a

specific period with periodical repament ? Marks: 2+ 0.5-

(lean oerdraft (ash credit

!oans 'erm loans

&n one of these'he (orrect &nswer is : 'erm loans



(hapter : (hapter5

5. 'erm loans are generall allowed for ac"#isition of fied assets s#ch as :Marks: 2+ 0.5-

$lant J Machiner tools e"#ipment (onstr#ction of %#ildingHfactor premises.

ehicles




Mod#le : Mod#le ,

(hapter : (hapter5 9. 'erms loans can %e classified as : Marks: 2+ 0.5-

Short term loan which is repaa%le in period less than 9 months Medi#m term loan where repament period is ears to ears

!ong term loan where repament period eceeds to seen ears &ll of the a%oe






(hapter : (hapter5 . & sec#red adance is one which is coered % : Marks: 2+ 0.5-

!and and %#ilding onl Stocks

$ersonal sec#rit of the %orrower

&n tangi%le sec#rit ntangi%le sec#rit

'he (orrect &nswer is : &n tangi%le sec#rit )o# did not answer the "#estion.



;. & sec#rit which hae its eistence in phsical form and can %e realiDed

% sale or transfer etc. is known as : Marks: 2+ 0.5-

angi%le sec#rit

ntangi%le sec#rit Moa%le sec#rit

mmoa%le sec#rit &ll of the a%oe

'he (orrect &nswer is : angi%le sec#rit )o# did not answer the "#estion.


Mod#le : Mod#le ,

(hapter : (hapter5 <. n parlance of sec#rities the principal of M&S( refers to : Marks: 2+ 0.5-

Marketa%ilit

&scertaina%ilti Sta%ilit

'ransfera%ilit




(hapter : (hapter5 ;0. & >oernment sec#rit is generall iss#ed in the form of : Marks: 2+ 0.5-

Stock (ertificates

,earer %onds $romissor 6ote


'he (orrect &nswer is : &ll of the a%oe





(hapter : (hapter5 ;1. Which of the following is not incl#ded in got. sec#rities ? Marks: 2+ 0.5-

$romissor 6otes =e%ent#re

,earer ,onds


'he (orrect &nswer is : =e%ent#re )o# did not answer the "#estion.



;2. & %earer %ond is : Marks: 2+ 0.5-

an instr#ment eidencing a de%t in the name of the holder an instr#ment of loan iss#ed % sched#led commercial %ank

an instr#ment stating that the %earer thereof is entitled to receiepament of a certain s#m on the mat#rit date as per the terms of the

partic#lar loan for which the %ond is iss#ed &ll of the a%oe

7a8 and 7c8'he (orrect &nswer is : an instr#ment stating that the %earer thereof is

entitled to receie pament of a certain s#m on the mat#rit date as per theterms of the partic#lar loan for which the %ond is iss#ed




;. & %earer %ond can %e transferred % : Marks: 2+ 0.5-

*ndorsement

'ransfer deed *ndorsement and delier

Mere delier and no other formalities are re"#ired 6one of the a%oe

'he (orrect &nswer is : Mere delier and no other formalities arere"#ired



(hapter : (hapter5 ;3. ,ankers are not s#pposed to grant adance against : Marks: 2+ 0.5-

third part shares

partl paid shares



preference shares e"#it shares

&ll of these'he (orrect &nswer is : partl paid shares



;5. &s per , directie the shares sho#ld %e transferred in %ank4s name if

adance against the shares eceeds : Marks: 2+ 0.5-

s. one crore s. ten crore

s. one lac s. ten lac

6one of these'he (orrect &nswer is : s. ten lac



(hapter : (hapter5 ;9. /or granting adances against !ife ns#rance $olic the charge in

fao#r of %ank is created % wa of : Marks: 2+ 0.5-

*ndorsement on polic $ledge of the polic with the %ank

Cpothecation of !ife ns#rance $oli &ssignment in fao#r of the %ank

&n one of the a%oe

'he (orrect &nswer is : &ssignment in fao#r of the %ank )o# did not answer the "#estion.



;. /or allowing adances against !ife ns#rance polic loan amo#nt

depends on : Marks: 2+ 0.5-

a8 the s#m ass#red %8 paid #p al#e of the sec#rit

c8 s#rrender al#e of the polic d8 &ll of the a%oe

e8 6one of the a%oe'he (orrect &nswer is : c8 s#rrender al#e of the polic



(hapter : (hapter5 ;;. ,efore granting adances following sho#ld %e erified : Marks: 1+ 0.25-



$olic sho#ld not %e whole life polic. $olic sho#ld %e r#n at least for three ears.

$remi#m has %een paid #pto date &ge of the polic holder sho#ld %e accepted



Mod#le : Mod#le ,

(hapter : (hapter5 ;<. &dance against s#ppl %ills is allowed on the %asis of : Marks: 2+ 0.5-

ailwa eceiptH!orr eceipts

Warrant nspection not iss#ed % the representatie of the concerned goernment

a#thorit certifing the "#antit of goods s#pplied or contract workperformed.

&ll of the a%oe

7a8 and 7c8'he (orrect &nswer is : nspection not iss#ed % the representatie of theconcerned goernment a#thorit certifing the "#antit of goods s#pplied or

contract work performed. )o# did not answer the "#estion.



<0. ,ook =e%ts refer to : Marks: 2+ 0.5-

=e%t owing to a %#siness enterprise % a c#stomer arising o#t of the

sale of goods on credit =e%ts paa%le to the %ank

=e%ts d#e to s#ndr creditors &ll of the a%oe

6one of the a%oe'he (orrect &nswer is : =e%t owing to a %#siness enterprise % a

c#stomer arising o#t of the sale of goods on credit



(hapter : (hapter5 <1. What are the doc#ments which attract the same stamp d#t thro#gh o#t

the length and width of the co#ntr ? Marks: 2+ 0.5-

Mortgage =eed =emand $romissor 6ote

Cpothecation =eed =eed of >#arantee

&ll of the a%oe'he (orrect &nswer is : =emand $romissor 6ote






<2. What is the maim#m stamp d#t on =$6 ? Marks: 2+ 0.5-

&d alorem 25 paise Bne r#pee

30 paise

90 paise'he (orrect &nswer is : 25 paise



(hapter : (hapter5 <. Stamp d#t on =$6 is paid % wa of : Marks: 2+ 0.5-

een#e stamp 6on-E#dicial stamp paper (ash deposit in treas#r

&n of a%oe 6one of a%oe

'he (orrect &nswer is : een#e stamp )o# did not answer the "#estion.



<3. t is a characteristic of the *nglish mortgage that : Marks: 2+ 0.5-

the personal lia%ilit of the mortgager remains notwithstanding the

a%sol#te transfer of the propert to the mortgagee in case of defa#lt in repament of mortgage mone the mortgagee has a

right to sell the mortgaged propert o#tside the co#rt in specialcirc#mstances mentioned in Sec. 9< of the 'ransfer of $ropert &ct. 1;;2

,oth of the a%oe


'he (orrect &nswer is : ,oth of the a%oe )o# did not answer the "#estion.



<5. Where the mortgager ostensi%l sells the mortgaged propert on thecondition that in defa#lt of pament of the mortagage mone on a certain

date the sale shall %ecome a%sol#te or on the condition that on s#chpament %eing made the %#er shall transfer the propert to the seller the

transaction is known as : Marks: 2+ 0.5-

Simple mortgage



Mortgage % condition sale Mortgage % deposit of title deeds

6one of these &ll of the a%oe

'he (orrect &nswer is : Mortgage % condition sale )o# did not answer the "#estion.


(hapter : (hapter5

<9. Where a person in an of the towns which the State >oernmentconcerned ma % notification in the Bfficial >aette specif on this %ehalf

deliers to a creditor or his agent doc#ment or title to immoa%le propertwith intent to create a sec#rit thereon the transaction is called a :

Marks: 2+ 0.5-

Simple mortgage

*nglish mortgage *"#ita%le mortgage

&nomalo#s mortgage 6one of the a%oe

'he (orrect &nswer is : *"#ita%le mortgage )o# did not answer the "#estion.



<. 'he mortgager who has redeemed the mortgage is entitled onredemption to the following right : Marks: 2+ 0.5-

'o get %ack from the mortgagee the mortgage deed and all the other

related doc#ments.

'o o%tain possession of the mortgaged propert. 'o hae the mortgaged propert retransferred at his cost to him or to

s#ch third person as he ma direct. &ll of the a%oe

6one of the a%oe




<;. &fter the mortgage mone has %ecome d#e and %efore a decree has

%een passed for the redemption of the propert the mortgagee in thea%sence of a contract to the contracr ma o%tain from the co#rt a decreeagainst the mortgager that is to sa the mortgager sho#ld %e a%sol#tel

de%arred of his right to redeem the propert. 'his right of the mortgage isknown as : Marks: 2+ 0.5-

ight of accession

ight of sale ight of foreclos#re



ight of possession 6one of the a%oe

'he (orrect &nswer is : ight of foreclos#re )o# did not answer the "#estion.


Mod#le : Mod#le , (hapter : (hapter5 <<. 'he right of foreclos#re is not allowed to a mortgagee #nder : Marks: 2+

0.5-

Simple mortgage *nglish mortgage

*"#ita%le mortgage &ll of these




(hapter : (hapter5 100. Where % an case other than the wrongf#l act or defa#lt of the

mortgage or mortgagee the mortgaged propert is wholl or partialldestroed or the sec#rit is rendered ins#fficient and the mortgager has not

proided eno#gh f#rther sec#rit the mortgagee has a right to file a s#it ina co#rt of law for the mortgage mone.& sec#rit is considered ins#fficient

#nless the al#e of the mortgaged propert eceed the amo#nt for the time%eing % : Marks: 2+ 0.5-

one-third or if consisting of %#ilding eceeds % one-half

one-half or if consisting of %#ilding eceeds % one-third

one-third in %oth cases one-half in %oth cases

&n of the a%oe'he (orrect &nswer is : one-third or if consisting of %#ilding eceeds %

one-half



(hapter : (hapter5 101. =#ring the contin#ance of the mortgage in possession the mortgagee

has the following lia%ilit : Marks: 2+ 0.5-

Ce m#st manage the propert as a person of ordinar pr#dence. Ce m#st #se the %est endeaors to collect the rents and profits and

sho#ld in the a%sence of a contract to the contrar pa the >oernmenteen#e o#t of the income.

Ce m#st keep acco#nts of an monies receied and spent % him asmortgagee.







102. When a proposal for an adance against immoa%le propert isreceied the following point sho#ld %e caref#ll considered : Marks: 2+ 0.5-

,orrower4s title

al#ation of the propert $ament of m#nicipal and >ot. d#es




Mod#le : Mod#le ,

(hapter : (hapter5 10. &n estimate of the al#e of the propert can %e arried at % :

Marks: 2+ 0.5-

taking architect or engineer4s certificates scr#tiniDing the certificate iss#ed % a local a#thorit for taation p#rpose

calc#lations %ased on the net ield % wa of rent &n of the a%oe

6one of the a%oe'he (orrect &nswer is : &n of the a%oe


undefined


103. &ccording to Sec. 5< of the 'ransfer of $ropert &ct 1;;2 where theprincipal mone sec#red is one h#ndred r#pees or more a mortgage other

than a mortgage % deposit of title deeds can %e affected onl % a

registered instr#ment signed % the mortgager and attested % twowitnesses. 'he doc#ment is to %e presented for registration at the office of

the S#%-egistrarHegistrar of &ss#rances within : Marks: 2+ 0.5-

a8 one month from the date of eec#tion %8 three months from the date of eec#tion

c8 fo#r months from the date of eec#tion

d8 6one of the a%oe e8 &n one of the a%oe'he (orrect &nswer is : c8 fo#r months from the date of eec#tion



(hapter : (hapter5



105. Mr. >#pta mortgages his %#nglow to ,ank of ndia to sec#re a cashcredit limit of s. one lakh. While the acco#nt is drawn to the etent of s.

50000H-. C=/( who had notice of the first mortgage adance s. 5000H-against the same propert and gies notice to ,ank of ndia of the second

mortgage in his fao#r. S#%se"#ent to this notice Mr. >#pta %orrowsf#rther s. 50000H- #nder the cash credit limit #p to the f#ll stip#lated

limit. Marks: 2+

0.5-

'he entire %orrowing to the etent of s. one lakh will receie priorit

altho#gh part of it was drawn s#%se"#ent to the notice of the second

mortgage. 'he loan of s. 5000H- from C=/( will hae the priorit oer the 2nd

instalment drawn % Mr. >#pta from the ,ank. ,oth the facilities will hae the same priorit.


'he (orrect &nswer is : 'he entire %orrowing to the etent of s. one lakhwill receie priorit altho#gh part of it was drawn s#%se"#ent to the notice

of the second mortgage.



109. & %orrower can legall create an n#m%er of mortgages on hispropert. 'he mortgages howeer will rank in priorit accordingl to the

dates of the mortgage.n this contet the following statement is tr#e :Marks: 2+ 0.5-

& s#%se"#ent mortgagee sa a third mortgagee % redeeming a priormortgage. Sa the first mortagee is entitled to lack 7fasten8 his third

mortgage to the first mortgage so redeemed to the detriment of the

intermediate mortgageeK i.e. the second mortgagee. 6o s#%se"#ent mortgage % paing off a prior mortgage whether with or

witho#t notice of an intermediate mortgage ac"#ires there% an priorit inrespect of his original sec#rit.

& %anker who has made an adance on second mortgage can not take

oer the first mortgage % paing off the d#es to the first mortgagee. 6one of the a%oe

&ll o the a%oe'he (orrect &nswer is : 6o s#%se"#ent mortgage % paing off a prior

mortgage whether with or witho#t notice of an intermediate mortgageac"#ires there% an priorit in respect of his original sec#rit.



(hapter : (hapter5 10. 'he following is one of the main characteristic of mortgage % deposit

of title deeds 7e"#ita%le mortgage8 : Marks: 2+ 0.5-

a8 6o writing or registration is necessar %8 'here m#st %e a de%t eisting or f#t#re to create a alid e"#ita%le



mortgage. c8 Briginal title deeds are re"#ired to %e deposited in certain notified

lowns. d8 &ll of the a%oe

e8 6one of the a%oe'he (orrect &nswer is : d8 &ll of the a%oe


Mod#le : Mod#le ,

(hapter : (hapter5 10;. Which of the following statement s is tr#e ? Marks: 2+ 0.5-

& mortgage % deposit of title deeds takes effect against an mortgage

deed s#%se"#entl eec#ted and registered which relates to the samepropert.

&n e"#ita%le mortgage of the %#ilding contr#cted on the land incantonment areas is not considered to %e a goods sec#rit. Bnl legal

mortgage ma %e accepted.

f the mortgager is a limited compan the charge % wa of mortgagesimple e"#ita%le or of an other nat#re m#st %e filed for registration withthe egistrar of (ompanies.





10<. &ccording to the law of limitation a s#it on the %asis of registered

mortgage deedHe"#ita%le mortgage for recoer of mortgage mone m#st%e filed %efore the epir of 12 ears from the date of adance. f the %ank

want to enforce the personal coenant against the mortgager the s#it willhae to %e filed : Marks: 2+ 0.5-

within ears of the adance

within 12 ears of the adance

it is not possi%le to make the mortgager personalit lia%le for the de%ts 6one of the a%oe

7a8 and 7c8'he (orrect &nswer is : within ears of the adance



(hapter : (hapter5 110. & father mortgaged as s#ret Eoint Cind# famil propert fao#ring a

%ank which finance his son for a %#siness. Fpon defa#lt % the son the %ankcan enforce the mortgage : Marks: 2+ 0.5-

to the etent of father4s interest in the propert

to the etent of son4s interest in the propert



against the interest of %oth 7father and son8 in the propert 6one of the a%oe

7a8 or 7%8'he (orrect &nswer is : to the etent of father4s interest in the propert



111. $rimar sec#rit is one which : Marks: 2+ 0.5-

is created o#t of loan amo#nt.

s the main sec#rit to coer the adance and is owned % the %orrower 7a8 and 7%8 a%oe

can %e sold in primar mone market 6one of the a%oe

'he (orrect &nswer is : 7a8 and 7%8 a%oe )o# did not answer the "#estion.

*planation :


112. & collateral sec#rit refers to : Marks: 2+ 0.5-

a sec#rit which is aaila%le parallel to or side % side with the %ankerspersonal right of action against the %orrower

a sec#rit which is offered in addition to prime sec#rit to sec#re theadance of the %ank. (ollateral sec#rit ma %elong to %orrower on third

part. ,oth of the a%oe

&n of the a%oe

6one of the a%oe'he (orrect &nswer is : ,oth of the a%oe



(hapter : (hapter5

11. & g#arantee gien % a third part to sec#re the adance falls #nderthe categor of : Marks: 2+ 0.5-

$rime sec#rit

(ollateral sec#rit ,oth of the a%oe


'he (orrect &nswer is : ,oth of the a%oe )o# did not answer the "#estion.





113. !oans against merchandise : Marks: 2+ 0.5-

are not in practice among %anks in ndia is one of the easiest forms of %ank adances

are allowed after o%taining permission from , are allowed onl to approed parties

6one of the a%oe'he (orrect &nswer is : is one of the easiest forms of %ank adances )o# did not answer the "#estion.

*planation :


(hapter : (hapter5 115. 'he doc#ments of title to goods are : Marks: 2+ 0.5-

a8 noice of the seller of the goods

%8 ailwa receipt !orr receipt and ,ill of lading c8 (ertificate iss#ed % c#stomer a#thoriDes in regard to ownership of the

goods

d8 &ll of the a%oe e8 6one of the a%oe'he (orrect &nswer is : %8 ailwa receipt !orr receipt and ,ill of lading



(hapter : (hapter5 119. Which of the following is a doc#ment of title to goods ? Marks: 2+ 0.5-

&irwa %ill

Wareho#se receipt

=#ck warrant Whar finger4s certificate

7%8 7c8 and 7d8.'he (orrect &nswer is : 7%8 7c8 and 7d8.


undefined


11. Stock *change Sec#rities comprise of : Marks: 2+ 0.5-

shares and de%ent#res of companies >ot. sec#rities iss#ed % central and state goernments

M#nicipal ,onds. $ort 'r#st and mproement 'r#st ,onds ,onds iss#ed % $#%lic Sector (orporations




(hapter : (hapter5



11;. 'he gilt-edged sec#rities refer to : Marks: 2+ 0.5-

Sec#rities which gilters Sec#rities or inestment where the risk is normal or Dero in regard to

pament of principal and interest Shares of %l#e chip companies

7%8 and 7c8 6one of the a%oe'he (orrect &nswer is : Sec#rities or inestment where the risk is normal

or Dero in regard to pament of principal and interest



(hapter : (hapter5 11<. & >oernment Sec#rit is the sec#rit which is iss#ed % the

>oernment to raise a p#%lic loan and iss#ed in the form of : Marks: 2+ 0.5-

,earer %onds

$romissor notes Stock certificates &ll of the a%oe




(hapter : (hapter5 120. >ot. Sec#rities are called gilt-edge sec#rities %eca#se : Marks: 2+ 0.5-

these sec#rities carr fied interest rate the are easil realiDa%le

their prices generall do not fl#ct#ate adersel the title is not diffic#lt to ascertain





121. &n adance ma %e : Marks: 2+ 0.5-

clean partl sec#red

f#ll second &n one of a%oe

6one of the a%oe'he (orrect &nswer is : &n one of a%oe


undefined




122. What do o# mean % partl sec#red adance ? Marks: 2+ 0.5-

$artl sec#red adance is the adance where market al#e of sec#rit ofless than the amo#nt of adance.

n partl sec#red adance al#e of sec#rit is more than the amo#nt ofadance. Where the al#e of sec#rit is E#st ade"#ate to coer the adance.

&ll of the a%oe




(hapter : (hapter5 12. 'r#st receipt refers to : Marks: 2+ 0.5-

receipt iss#ed % an tr#st donation receipt of charita%le tr#st a doc#ment containing promise from the %orrower to hold goods or their

sale proceeds as tr#stee for the %anker. &n of the a%oe

6one of the a%oe'he (orrect &nswer is : a doc#ment containing promise from the

%orrower to hold goods or their sale proceeds as tr#stee for the %anker. )o# did not answer the "#estion.


Mod#le : Mod#le ,

(hapter : (hapter5 123. &dances against tr#st receipts are treated as : Marks: 2+ 0.5-

sec#red adances

partl sec#red adances clean adances

&ll of these

6one of the a%oe'he (orrect &nswer is : clean adances



(hapter : (hapter5 125. ,l#e chip sec#rities refer to : Marks: 2+ 0.5-

shares of an compan

shares of companies which are listed at an of the stock echange shares of good companies


'he (orrect &nswer is : shares of good companies





(hapter : (hapter5 129. 'r#stee sec#rities refer to : Marks: 2+ 0.5-

sec#rities iss#ed #nder the proisions of Section 20 of ndian 'r#st (o. sec#rities iss#ed in tr#st of other

an sec#rit


'he (orrect &nswer is : sec#rities iss#ed #nder the proisions of Section20 of ndian 'r#st (o.



(hapter : (hapter5

12. !etter of contin#it is o%tained in r#nning acco#nt iD. oerdraft orcash credit in order to : Marks: 1+ 0.25-

ens#re that the adance does not %ecome time %arred #nder the!imitation &ct

proide contin#o#s alidit or life to =$6 s#%Eect to oerall limitation ofthree ears

ena%le the %ank to consider the loan as sec#red loan &ll of the a%oe

6one of the a%oe'he (orrect &nswer is : proide contin#o#s alidit or life to =$6 s#%Eect

to oerall limitation of three ears



(hapter : (hapter5 12;. !etter of contin#it is not o%tained in case of : Marks: 2+ 0.5-

=emand !oan (ash (redit 7Cp.8 aHc

(ash credit 7$ledge8 aHc Berdraft aHc

&ll of the a%oe'he (orrect &nswer is : (ash (redit 7Cp.8 aHc



(hapter : (hapter5 12<. 'he limitation period of a demand loan doc#ment is : Marks: 2+ 0.5-

three ears from the date of =$6

2 months



no limit. /ie ears.

6one of the a%oe'he (orrect &nswer is : three ears from the date of =$6



10. & loan or adance paa%le on demand against the sec#rit of

immoa%le propert % wa of mortgage the limitation period is : Marks: 2+

0.5-

twele ears from the date of mortgage deed three ears from the date of mortgage deed

fie ears from the date of mortgage deed 6one of the a%oe

'wele ears from the date of =$6'he (orrect &nswer is : twele ears from the date of mortgage deed



(hapter : (hapter5 11. $ledge means : Marks: 2+ 0.5-

adance against goods

hpothecation of goods %ailment of goods as sec#rit for pament of a de%t or performance of a

promise open limits

none of the a%oe

'he (orrect &nswer is : %ailment of goods as sec#rit for pament of ade%t or performance of a promise


undefined


12. n case of adance against pledge of goods : Marks: 2+ 0.5-

possession as well as ownership passes to the %ank possession and ownership remains with the %orrower

the possession passes to the %ank %#t the legal ownership remains with

the %orrower possession with the %orrower and ownership with the %ank 6one of the a%oe

'he (orrect &nswer is : the possession passes to the %ank %#t the legalownership remains with the %orrower


undefined




1. n pledge the delier of goods ma %e : Marks: 2+ 0.5-

&ct#al (onstr#ctie

,oth of these &n of the a%oe 6one of the a%oe

'he (orrect &nswer is : ,oth of these



(hapter : (hapter5 13. Which of the following transactions wo#ld amo#nt to a pledge ?

Marks: 2+ 0.5-

=elier of the ke where the goods are stored.

*ndorsement of ailwa eceiptH!orr eceipt in fao#r of %ank % the%orrower.

*ndorsement of wareho#se receipt % the %orrower in fao#r of the %ank. 6one of the a%oe




(hapter : (hapter5 15. 'he %ailment of goods as sec#rit for pament of a de%t or

performance of a promise is known as : Marks: 2+ 0.5-

$ledge

Cpothecation Mortgage

!ien

6one of these'he (orrect &nswer is : $ledge



(hapter : (hapter5

19. Which of the following conditions are essential to constit#te a alidpledge ? Marks: 2+ 0.5-

,ailment of goods. ,ailment m#st %e or on %ehalf of the de%tor or intending de%tor.

t m#st %e the intention of the parties that the goods will sere assec#rit for a de%t or performance of a promise.

&ll o the a%oe 6one of the a%oe



'he (orrect &nswer is : &ll o the a%oe )o# did not answer the "#estion.



1. & alid pledge can %e in respect of : Marks: 2+

0.5-

goods or an other moa%le propert

stocks and shares

doc#ments of title to goods 6one of the a%oe

&ll of these'he (orrect &nswer is : 6one of the a%oe



(hapter : (hapter5

1;. Which of the following statements is correct ? Marks: 2+ 0.5-

'he delier of doc#ments of title to goods 7ecept a %ill of lading8 % the

owner of the goods to the lender is not considered as a alid pledge in*nglish !aw howeer #nder the ndian !aw s#ch delier constit#tes a

alid pledge. 'he delier of doc#ments of title to goods % the owner of the goods to

the lender is not considered as a alid pledge in ndian !aw howeer #nderthe *nglish !aw s#ch delier constit#tes a alid pledge.

,oth of the a%oe are correct 6one of the a%oe

&n of the a%oe

'he (orrect &nswer is : 'he delier of doc#ments of title to goods7ecept a %ill of lading8 % the owner of the goods to the lender is not

considered as a alid pledge in *nglish !aw howeer #nder the ndian !aws#ch delier constit#tes a alid pledge.


undefined


1<. 9;9f the possession on the goods or sec#rities pledged is lost it isdeemed to hae come to an end ecept : Marks: 2+ 0.5-

Where a letter of $ledge is eec#ted.

Where a letter of Cpothecation is eec#ted. Where a 'r#st eceipt is eec#ted.


'he (orrect &nswer is : Where a 'r#st eceipt is eec#ted. )o# did not answer the "#estion.





130. f the c#stomer who has taken delier of the goods a 'r#st eceipt isdeclared an insolent. Marks: 2+ 0.5-

a8 'he receier can claim the goods on the gro#nd that the %orrower is

the owner of the goods and can aail himself of the sec#rit or theproceeds thereof. %8 'he receier cannot claim the goods as a%oe.

c8 6one of the a%oe

d8 &ll of the a%oe'he (orrect &nswer is : %8 'he receier cannot claim the goods as a%oe.



(hapter : (hapter5 131. & charge against propert for an amo#nt of de%t where neither

ownership not possession is passed to the creditor is known as : Marks: 2+

0.5-

$ledge Cpothecation

Mortgage !ien

6one of these'he (orrect &nswer is : Cpothecation



(hapter : (hapter5

132. n the case of an hpothecation adance to a compan : Marks: 2+ 0.5-

the charge has to %e comp#lsoril filed for registration #nder Section 125of the (ompanies &ct 1<59 within a period of 0 das of the creation of the

charge

the charge has to %e comp#lsoril filed for registration within a period of<0 das of the creation of the charge

the charge is not re"#ired to %e registered 6one of the a%oe

&ll of the a%oe'he (orrect &nswer is : the charge has to %e comp#lsoril filed for

registration #nder Section 125 of the (ompanies &ct 1<59 within a period

of 0 das of the creation of the charge )o# did not answer the "#estion. *planation :


(hapter : (hapter5 13. When specific goods are charged to the %anker % a firm % means of a

letter of Cpothecation %#t are in act#al or constr#ctie possession of the%orrower then in the eent of the insolenc of the %orrower the goods :



Marks: 2+ 0.5-

can %e claimed % the Bfficial eceie

can %e claimed % the Bfficial eceier for the general %enefits of thecreditors

cannot %e claimed % the Bfficial eceier


'he (orrect &nswer is : cannot %e claimed % the Bfficial eceier



(hapter : (hapter5 133. & transfer % one person of a right propert or de%t 7eisting of

f#t#re8 to another person is known as : Marks: 2+ 0.5-

6egotiation &ssignment

6omination !ien

6one of these'he (orrect &nswer is : &ssignment



(hapter : (hapter5 135. 'he person who assigns the right propert or de%t is called the :

Marks: 2+ 0.5-

assignor

assignee assigned nominee

6one of these

'he (orrect &nswer is : assignee )o# did not answer the "#estion.



139. 'he person to whom the right etc are assigned is called the :Marks: 2+ 0.5-

assignor assignee

assigned nominee

6one of these'he (orrect &nswer is : assignee


undefined




13. t is permissi%le #nder Section 10 and 19 of the 'ransfer of $ropert&ct 1;;2 to assign 4actiona%le claims4 to anone ecept to : Marks: 2+ 0.5-

a E#dge

a legal practitioner an office of the (o#rt of A#stice &n one of these

6one of the a%oe

'he (orrect &nswer is : &n one of these )o# did not answer the "#estion.



13;. 'he assignment of a de%t is not considered as a satisfactor sec#ritand is taken onl in eceptional cases where the %orrower4s credit is

ecellent and the %anker ma not hae to learn m#ch on the sec#rit

%eca#se : Marks: 2+ 0.5-

the al#e of the assignment of a de%t as sec#rit depends not onl #pon

the integrit of the %orrower who offers the sec#rit %#t also on thecreitworthiness and integrit to the %orrower4s de%tor whose de%t is

assigned the assignee onl stands in the shoes of the assignor and can not hae

%etter rights than those which the assign possesses if there is %reach of the terms of the contact %etween the parties assignor

and his de%tor - it ma res#lt in the rep#diation of the de%t &ll of the a%oe

6one of the a%oe




13<. & ,ank gae an adance against %ills drawn on militar and other

a#thorities. 'he %orrower s#%mitted a $ower of &ttorne fao#ring the ,ankfor o%taining the pament from the drawees. ,#t %efore the ,ank receied

the pament the amo#nt d#e came #nder attachment % a co#rt. Marks: 2+

0.5-

a8 'he de%t d#e to the %anker cannot %e paid o#t of the %ill realiDation.

%8 'he power o attorne co#pled with endorsement did not amo#nt toassignment of the f#nd. c8 'he power of attorne co#pled with endorsement amo#nted to

assignment of the f#nd as s#ch the de%t to the %ank wo#ld %e paid o#t ofthe %ill realiDation which formed a 4specific f#nd4.

d8 6one of the a%oe e8 7a8 or 7%8



'he (orrect &nswer is : c8 'he power of attorne co#pled withendorsement amo#nted to assignment of the f#nd as s#ch the de%t to the

%ank wo#ld %e paid o#t of the %ill realiDation which formed a 4specific f#nd4. )o# did not answer the "#estion.


Mod#le : Mod#le , (hapter : (hapter5 150. Mone placed in the deposit acco#nt is assigna%le % the depositor to

another person. Marks: 2+ 0.5-

a8 )es onl if the deposit receipt is not marked 4not 'ransfera%le4

%8 )es een if the deposit receipt is marked 4not 'ransfera%le4 c8 6o.

d8 6one of the a%oe e8 *ither 7a8 or 7c8

'he (orrect &nswer is : %8 )es een if the deposit receipt is marked 4not'ransfera%le4



(hapter : (hapter5 151. & %orrower #nder a hire-p#rchase agreement eec#ted pronote

fao#ring the financing firm. 'he firm assigned it to the %ank. (an the %ank%ring a s#it against of the %orrower ? Marks: 2+ 0.5-

a8 'he %ank can %ring a s#it against the %orrower on the %asis of the

assignment of the pronote. %8 'he %ank cannot %ring a s#ite against the %orrower at all.

c8 'he %ank cannot %ring a s#it against the %orrower on the %asis of the

assignment of the pronote #nless loan coered % the hire-p#rchaseagreement is transferred.

d8 6one of the a%oe e8 &n of the a%oe

'he (orrect &nswer is : c8 'he %ank cannot %ring a s#it against the%orrower on the %asis of the assignment of the pronote #nless loan coered

% the hire-p#rchase agreement is transferred.



(hapter : (hapter5 152. When the legal assignment of a de%tor actiona%le claim eisting or

f#t#re has %een accepted as a sec#rit for an adance the %ank sho#ld takethe following safeg#ard : Marks: 2+ 0.5-

'he %ank sho#ld insist on a irreoca%le power of attorne in its faor and

this sho#ld %e sent to the c#stomer4s de%tor. 'he de%tor of the %orrower sho#ld %e asked to acknowledge receipt of the

notice and to confirm the amo#nt of de%t as also the fact that the has notreceie an notice of an earlier assignment and has no right of set of

against the assignor.



& constant watch sho#ld %e kept on the financial position of the de%tor ofthe %orrower.




(hapter : (hapter5

15. When a clear notice of assignment is gien and acknowledged % thede%tor the de%t is thereafter remoed from the order and disposition of the

assignor : Marks: 2+ 0.5-

a8 %#t can %e aaila%le to the official receier of the de%tor. %8 %#t can %e aaila%le to the official receier of the c#stomer

c8 %#t can %e aaila%le to the official receier of the assignor if he isadE#dged an insolent

d8 and cannot %e aaila%le to the official receier een if the c#stomer

7assignor8 to adE#dged an insolent e8 6one of the a%oe'he (orrect &nswer is : d8 and cannot %e aaila%le to the official receier

een if the c#stomer 7assignor8 to adE#dged an insolent )o# did not answer the "#estion.



153. Sometimes %anks accept as sec#rit from a limited compan the %ookde%ts that are d#e to the compan. Which of the following statements is

tr#e in this regard ? Marks: 1+ 0.25-

(harge has to %e registered with the register of companies if the mode of

charge is % wa of assignment. (harge has to %e registered with the B( if the mode of charges is %

wa of hpothecation. 'he charge will not re"#ire registration when a negotia%le instr#ment is

gien to sec#re the pament of %ook de%ts of the compan and the same is

deposited for sec#ring the adance. &ll of the a%oe




(hapter : (hapter5 155. !ien is : Marks: 2+ 0.5-

a8 transfer of ownership to the lender

%8 a right of a person to retain the goods which is in his possession %elonging to another person #ntil claim or d#es attached to it are f#ll

satisfied or paid discharged



c8 ,anker4s right to retain the /= #ntil loan is repaid d8 &ll of the a%e

e8 6one of the a%oe'he (orrect &nswer is : %8 a right of a person to retain the goods which is

in his possession %e longing to another person #ntil claim or d#es attachedto it are f#ll satisfied or paid discharged


Mod#le : Mod#le ,

(hapter : (hapter5 159. !ien %ecomes time %arred after : Marks: 2+ 0.5-

a8 three ears from the delier of goods

%8 two ears three months from the date loan c8 the d#e date of loan

d8 !ien does not hae limitation period e8 6one of the a%oe

'he (orrect &nswer is : d8 !ien does not hae limitation period



15. n the case of adances against fied deposits receipts of the %ank :Marks: 2+ 0.5-

a8 =eposit represented % the receipt is assigned to the %ank. %8 =eposit receipt is pledged to the %ank

c8 =eposit receipt is hpothecated to the %ank. d8 & lien is created on the deposit receipts in fao#r of the %ank.

e8 6one of the a%oe

'he (orrect &nswer is : d8 & lien is created on the deposit receipts infao#r of the %ank.


undefined


15;. 6egatie lien is : Marks: 2+ 0.5-

a declaration of the %orrower that his assets are free from anenc#m%erance and that he shall not enc#m%er or dispose them of witho#t

%anks permission

a right of %ank to take possession a lien on shares and de%ent#res of limited companies &ll of the a%oe

6one of the a%oe'he (orrect &nswer is : a declaration of the %orrower that his assets are

free from an enc#m%erance and that he shall not enc#m%er or disposethem of witho#t %anks permission






15<. ,anker4s lien is e"#ialent to pledge %eca#se : Marks: 2+ 0.5-

a8 ,ank has in its possession the propert %8 ,ank has a right to sell the propert c8 ,ank retains the propert

d8 &ll of the a%oe

e8 6one of the a%oe'he (orrect &nswer is : %8 ,ank has a right to sell the propert



(hapter : (hapter5 190. What are the eceptions of lien ? Marks: 2+ 0.5-

&rticles kept in safe c#stod. Sec#rities gien to %ankers for specific p#rpose. ,oth of a%oe

&n one of a%oe 6one of the a%oe

'he (orrect &nswer is : ,oth of a%oe )o# did not answer the "#estion.



module b 2 chapter 5

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