Module: | Introduction and Definitions
Q3: Consider the following statements regarding the enforcement process under Section 13 of the SARFAESI Act:
1. The secured creditor must issue a demand notice giving the borrower 60 days to discharge their liability.
2. If the borrower submits an objection to the notice, the secured creditor must communicate their response within 15 days.
3. If the borrower fails to repay within the notice period, the creditor may take possession of the secured asset under Section 13(4).
Which of the statements given above are correct?
2. If the borrower submits an objection to the notice, the secured creditor must communicate their response within 15 days.
3. If the borrower fails to repay within the notice period, the creditor may take possession of the secured asset under Section 13(4).
Which of the statements given above are correct?
✅ Correct Answer: D
The standard procedure under Section 13 involves three key steps: issuing a 60-day demand notice under Section 13(2), replying to any borrower representations within 15 days under Section 13(3A), and taking recourse to measures like possession under Section 13(4) if the dues remain unpaid.