Module: | Operational Procedures & Miscellaneous
Q16: Under the SARFAESI Act, the enforcement of security interest can involve different modes of taking possession. Which of the following statements correctly distinguish between "Symbolic Possession" and "Physical Possession"?
1. Symbolic Possession occurs when the bank issues a possession notice and publishes it, but the borrower continues to occupy the property.
2. Physical Possession involves the bank taking actual custody and control of the property, often to the exclusion of the borrower.
2. Physical Possession involves the bank taking actual custody and control of the property, often to the exclusion of the borrower.
✅ Correct Answer: C
The law recognizes two stages: "Symbolic Possession" (constructive possession), where the legal formality of possession is completed via notices under Rule 8(1) while the borrower stays in the property, and "Physical Possession," where the bank actually takes over the property to hand it over to a buyer or manager.