GK
BANKING AWARENESS AND SEBI
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Security
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Securitisation
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Detailed explanation-1: -The SARFAESI Act allows banks and other financial institutions for auctioning commercial or residential properties to recover a loan when a borrower fails to repay the loan amount. Thus, the SARFAESI Act, 2002 enables banks to reduce their non-performing assets through recovery methods and reconstruction.
Detailed explanation-2: -ARC, the first asset reconstruction company, was established under this act. The SARFAESI Act, 2002 was framed to allow the financial houses to assess the asset quality in different ways.
Detailed explanation-3: -(13) No borrower shall, after receipt of notice referred to in sub-section (2), transfer by way of sale, lease or otherwise (other than in the ordinary course of his business) any of his secured assets referred to in the notice, without prior written consent of the secured creditor.