Let us discuss
some more Multiple-Choice Questions on TYPES OF CHARGES, SECURITIES &
DOCUMENTATION

 

91. What is the
limitation for filing suit for recovery of money?

Option A. Five
years.

Option B. Three
years.

Option C. Ten
years.

Option D. twelve
years.

 

The correct
answer is Option B. Three years.

 

92.  Limitation period for exercising Right of
Redemption and Right of Foreclosure is

Option A.  3 years.

Option B.  12 years.

Option C.  30 years.

Option D.  30 years in case the beneficiary is
Government and 12 years in other cases.

 

The correct
answer is Option C. 30 years.

 

 

93.  Which of the following is true about law of limitation?

Option A.  If limitation period expires, bank cannot
recover the amount from the borrower.

Option B.  If limitation period expires, the bank cannot
sell the goods pledged to it.

Option C.  If limitation expires bank can act under
SARFAESI Act, 2002.

Option D.  If limitation period expires, bank loses the
remedy of filing a suit but it does not take away the right of recovering the
debt.

 

The correct
answer is Option D. If limitation period expires, bank loses the remedy of
filing a suit but it does not take away the right of recovering the debt.

 

 

94.  A loan was sanctioned to a partnership but
since the partners were at different places, the documents were executed by one
partner on 15.3.2013, second partner on 18. 
3.  2013 and third partner on
21.3.2013.  The limitation period against
the firm will run from.

Option A.  15.3.2013.

Option B.  18.3.2013.

Option C.  21.3.2013.

Option D.  any one of these dates as per discretion of
the bank.

 

The correct
answer is Option C. 21.3.2013.

 

 

95.  The limitation period for recovery of amount
of a dishonoured usance bill is 3 years from.

Option A.  date of bill.

Option B.  date of acceptance.

Option C.  due date of payment.

Option D. date
of presentation of bill of acceptance.

 

The correct
answer is Option C. due date of payment.

 

 

96.  The period of limitation for execution of a decree,
in respect of decreed debt is years from the date of decree.

Option A.  3.

Option B.  12.

Option C.  30.

Option D.  Any of these depending upon beneficiary.

 

The correct
answer is Option B. 12.

 

 

97.  A demand promissory note was executed on
5.3.2010.  The suit for recovery of
amount based on the DP note alone can be filed up to.

Option A.  4.3.2013.

Option B.  5.3.2013.

Option C.  8.3.2013.

Option D.  3 years from the date of actual demand of
loan.

 

The correct
answer is Option B. 5.3.2013.

 

 

98.  A demand promissory note was executed on
07.04.2010.  If 07.04.2013 falls on
Sunday, the suit for recovery of amount can be filed up to.

Option A.  07.04.2008 as limitation will expire on
07.04.2013.

Option B.  06.04.2013 because though the limitation will
expire on 07.04.2013, but it being Sunday, suit can be filed up to next
preceding business day.

Option C.  07.04.2013 and Judge will be requested to
entertain application as a special case.

Option D.  08.04.2013 when the court opens.

 

The correct
answer is Option D. 08.04.2013 when the court opens.

 

 

99.  Acknowledgement of debt in a case was obtained
after expiry of limitation period.  In
this case what will be the position of bank as regards limitation period of documents?

Option A.  Limitation period will extend for 3 years
from date of expiry.

Option B.  Limitation period will extend for 3 years
from date of signing of acknowledgement of debt.

Option C.  Limitation period will extend for 3 years
from date of demand.

Option D.  Limitation period will not extend.

 

The correct
answer is Option D. Limitation period will not extend.

 

 

100.  In case of a bill payable on demand,
limitation period starts from.

Option A.  date of default.

Option B.  date of demand.

Option C.  date of bill.

Option D.  date of protest with Notary public.

 

The correct
answer is Option B. date of demand.

 

 

101.  A loan was granted to R and S with a clause
that they will be liable jointly and severally. 
As the documents were about to expire, bank obtained balance
confirmation from R only as S was out of town. 
On return of  S ,  Bank requested him to sign balance confirmation
which he refused.  In this case.

Option A.  limitation period will extend only against R.

Option B.  limitation period will extend against both R
and S.

Option C.  limitation period will not extend against
either as balance confirmation signed by one of them is not valid.

Option D.  limitation period will extend against both R
and S provided S was abroad.

 

The correct
answer is Option A. limitation period will extend only against R.

 

 

102.  Limitation period available to a holder of
cheque for acting under Section 138 of NI Act, 1881 for dishonoured cheque due
to insufficient funds is.

Option A.  One month from the date of cause of action.

Option B.  15 days from date of cause of action.

Option C.  3 years from date of dishonour.

Option D.  one month from date of demand.

 

The correct
answer is 102.  Limitation period
available to a holder of cheque for acting under Section 138 of NI Act, 1881
for dishonoured cheque due to insufficient funds is.

 

 

103.  In case of clean overdraft, the limitation
period is.

Option A.  3 years from date of document.

Option B.  3 years from date of sanction.

Option C.  3 years from the date of demand by bank.

Option D.  3 years from date of refusal by borrower to
pay.

 

The correct
answer is Option C. 3 years from the date of demand by bank.

 

 

104.  Bank requested the borrower to sign balance
confirmation for an outstanding balance of Rs. 
10,55, 422.  However, the borrower
contested that interest had been wrongly charged to the extent of Rs.  25,312 and therefore, acknowledged the debt
only for Rs.  10,30,110.  In this case limitation period.

Option A.  will extend for the whole of the debt.

Option B.  will not extend as the borrower has disputed
the liability.

Option C.  will extend for Rs.  10,30,110.

Option D.  will not extend as it is not a valid
acknowledgment.

 

The correct
answer is Option A. will extend for whole of the debt.

 

TYPES OF CHARGES, SECURITIES & DOCUMENTATION With
Multiple Choice Questions and answers (MCQs) – Part 1

105.  D. P. 
Note executed by a borrower has become time barred.  It means.

Option A.  that the bank has lost all rights against the
borrower.

Option B.  that the bank cannot proceed against the
borrower in a court on the basis of D. P. 
Note.

Option C.  bank cannot sell goods pledged with It.

Option D.  all above.

 

The correct
answer is Option B. that the bank cannot proceed against the borrower In a
court on the basis of D. P.  Note.

 

 

106. The period
of limitation for sale of mortgage property through court when it is payable on
demand is………. years from date of creation of mortgage.

Option A.  3.

Option B.  12.

Option C.  30.

Option D.  20.

 

The correct
answer is Option B. 12.

 

 

107.  Period of limitation of existing documents
can be extended by.

Option A.  obtaining letter of acknowledgement of debt.

Option B.  part payment of debt.

Option C.  obtaining a Fresh set of documents.

Option D.  either Option A. or Option B. above.

 

The correct
answer is Option D. either Option A. or Option B. above.

 

 

108.  A loan was granted to a borrower against
pledge of stocks and outstanding in the account is Rs.  5 lakh. 
Despite repeated reminders he has neither repaid the loan nor signed
balance confirmation.  As a result,
limitation has expired.  The value of
stocks pledged is about Rs. 4 lakh and borrower is also maintaining a saving
bank account with a balance of Rs.  1
lakh. What are the options available to the bank?

Option A.  The bank cannot recover the loan as the limitation
has expired.

Option B.  The bank cannot file a suit against borrower
as limitation has expired.

Option C.  The bank can sell the goods pledged and
exercise right of lien over SB balance.

Option D.  The bank can recover the loan by sale of
pledged goods and exercising right of set off on saving bank deposits.

 

The correct
answer is Option D. The bank can recover the loan by sale of pledged goods and
exercising right of set off on saving bank deposits.

 

 

109.  Currently a charge created by a limited
company on its assets is required to be registered with the Registrar of
Companies as per Section.

Option A.  Section 125 of the Companies Act of 1956.

Option B.  Section 138 of the Companies Act of 1956.

Option C.  Section 77 of the Companies Act, 2013.

Option D. 293 (1)
Option D. of the Companies Act, 1956.

 

The correct
answer is Option C. Section 77 of the Companies Act, 2013.

 

 

110.  Any charge (other than pledge) created by a
limited company on its assets is required to be registered with the Registrar
of Companies within. ……. days of the creation of charge.

Option A.  30.

Option B.  45.

Option C.  60.

Option D.  90.

 

The correct
answer is Option A. 30.

 

 

111.  As per current provisions given in Companies Act,
2013 if a limited company is not able to file particulars of charge with the
ROC within 30 days of creation of charge, the Registrar may, on an application
by the company, allow such registration to be made within a period of………days of
such creation on payment of such additional fees as may be prescribed.

Option A.  300.

Option B.  60.

Option C.  100.

Option D.  180.

 

The correct
answer is Option A. 300.

 

 

112.  Which of the following charge (s) is/are not
required to be registered with ROC?

Option A.  Hypothecation of stocks.

Option B.  Assignment of Book Debts.

Option C.  Mortgage of Immovable property.

Option D.  Pledge of stocks.

 

The correct
answer is Option D. Pledge of stocks.

 

 

113.  In which of the following cases, charge is
required to be registered with Registrar of companies?

Option A.  Advance against Trust Receipt.

Option B.  Advance based on negative lien.

Option C.  Advance against bank’s own deposit.

Option D.  None of these.

 

The correct
answer is Option D. None of these.

 

Part 2 : TYPES OF CHARGES, SECURITIES & DOCUMENTATION With Multiple Choice Questions and answers (MCQs) for Bank Promotion Exams

 

114.  In which of the following cases, charge is
not required to be registered with the Registrar of Companies?

Option A.  Advance against Documentary bills.

Option B.  Purchase of cheques.

Option C.  Pledge of stocks.

Option D.  All of these.

 

The correct
answer is Option D. All of these.

 

 

115.  In which of the following cases, the
modification of charge is required to be filed by the borrowing company with
the ROC?

Option A.  Change in the amount of limit.

Option B.  Variation in the rate of interest.

Option C.  Obtaining additional securities.

Option D.  only Option A. & Option C. above.

 

The correct
answer is Option D. only Option A. & Option C. above.

 

 

116.  The primary responsibility of filing the
particulars of charge with the ROC is that of.

Option A.  Borrowing company.

Option B.  lending banker.

Option C.  Manager of the bank.

Option D.  Both Option A. or Option B. above.

 

The correct
answer is Option A. Borrowing company.

 

 

117.  When an advance is fully repaid by the company,
the particulars regarding satisfaction of charge are required to be filed
within days of the adjustment of loan.

Option A.  15.

Option B.  30.

Option C.  45.

Option D.  60.

 

The correct
answer is Option B. 30.

 

 

118.  In which of the following cases, primary
responsibility of filing the particulars of charge with ROC is of the lending
banker?

Option A.  Registration of charge.

Option B.  Modification of charge.

Option C.  satisfaction of charge.

Option D. None
of these.

 

The correct
answer is Option D. None of these.

 

 

119.  A company has its registered office at Jaipur
In Rajasthan.  Its administrative office
is in Delhi while factory is located at Indore. 
The company raises loan from a bank having Head at Office at Mumbai
against hypothecation of machinery.  The
charge will be registered with the ROC.

Option A.  Delhi.

Option B.  Jaipur.

Option C.  Indore.

Option D.  Mumbai.

 

The correct
answer is Option B. Jaipur.