Module: | Operational Procedures & Miscellaneous
Q17: The sale of secured assets under SARFAESI involves specific documentation and transparency norms. Which of the following statements are correct?
1. To ensure fairness, the authorized officer must notify the borrower of the property's valuation and reserve price before the auction.
2. Upon the successful conclusion of the auction and payment of the full price, the bank issues a "Sale Certificate" to the purchaser as proof of transfer of title.
2. Upon the successful conclusion of the auction and payment of the full price, the bank issues a "Sale Certificate" to the purchaser as proof of transfer of title.
✅ Correct Answer: C
Transparency is key to the sale process; borrowers are informed of the valuation to allow them to contest undervaluation or bring a better buyer.
The "Sale Certificate" is the statutory document issued under the Security Interest (Enforcement) Rules that evidences the sale and transfer of title to the auction purchaser.
The "Sale Certificate" is the statutory document issued under the Security Interest (Enforcement) Rules that evidences the sale and transfer of title to the auction purchaser.