EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Earn 100

Cash credit facilities of Rs.10 lac have been sanctioned by Capital Bank to M/s Sunil Trading Co. in Bhopal. The loan documents have been signed by their two partners on Dec 12, 1998, at Bhopal and by one partner at Kolkata on Dec 25, 1998, which was a Holiday. When the loan account was not conducted properly, the bank decided to proceed against the party in court. The party took the plea that the documents have been signed at two places at two different times, due to which the bank cannot recover the amount on the basis of the documents?

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Important Questions on Loan Policy and Loan Documentation

EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 5
A document can be defined as_____.
MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 6
The resolution to raise a loan from a bank in a company should be passed:
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 7
A term loan agreement was signed by the borrower but stamp duty paid on the agreement was not adequate. The stamp duty can be made up subsequently, with the permission of:
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 8
In case documents have been executed outside India, the documents must be presented for registration before the Registrar of Assurances, after their receipt in India, within:
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 9
If the written acknowledgement is not properly stamped:
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 10
A bank decides to allow a term loan of Rs. 10 lac to a partnership firm with a minor admitted to the benefit. How the bank will get the documents signed, so far minor is concerned?
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 11
Rural Bank granted a loan for the purchase of a tractor in the name of Mr. Santa Singh and Banta Singh. The tractor is registered in the name of only Banta Singh. Due to non¬payment of the loan when a suit was filed Mr. Santa Singh denied his liability stating that he did not receive any consideration and the tractor is not registered in his name:
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 2 - Loan Policy and Loan Documentation>TEST YOUR SELF>Q 12
Union Bank sanctioned working capital credit limits of Rs.30 lac to an SSI unit headed by the proprietor Mr. Jaish Lal. Due to sudden program of Mr. Jaish Lal for a visit abroad, he executed a power of attorney in favour of his minor son to execute the documents, who comes to the branch for that purpose: