Table of Contents
CAIIB Paper 4 BRBL Module C Unit 10 : Registration Of Security Interest By Secured Creditors (New Syllabus)
IIBF has released the New Syllabus Exam Pattern for CAIIB Exam 2023. Following the format of the current exam, CAIIB 2023 will have now four papers. The CAIIB Paper 4 (BANKING REGULATIONS AND BUSINESS LAWS) includes an important topic called “Registration Of Security Interest By Secured Creditors”. Every candidate who are appearing for the CAIIB Certification Examination 2023 must understand each unit included in the syllabus.
In this article, we are going to cover all the necessary details of CAIIB Paper 4 (BRBL) Module C (IMPORTANT ACTS/LAWS & LEGAL ASPECTS OF BANKING OPERATIONS – PART B) Unit 10 : Registration Of Security Interest By Secured Creditors, Aspirants must go through this article to better understand the topic, Registration Of Security Interest By Secured Creditors and practice using our Online Mock Test Series to strengthen their knowledge of Registration Of Security Interest By Secured Creditors. Unit 10 : Registration Of Security Interest By Secured Creditors
Right Of Enforcement Of Securities
- Section 26D makes it compulsory for security interest to be registered with the Central Registry for it to be enforced.
- After the registration of security interest, the debts due to any secured creditor shall be paid in priority over all other debts and all revenues, taxes, cesses and other rates payable to the Central Government or State Government or local authority.
Rectification By Central Government In Matters Of Registration
Sections 26A of the SARFEASI Act deals with the powers given under the statute to the Central Government to condone and set right omissions/errors in filing of creation /modification/satisfaction of charges, mandatorily required to be carried out.
- The Central Government, on being satisfied that the omission to file with the Registrar the particulars of any transaction of securitization, asset reconstruction or security interest or modification or satisfaction of such transaction was accidental or due to inadvertence or some other sufficient cause or it is not of a nature to prejudice the position of creditors.
- That on other grounds, it is just and equitable to grant relief, may, on the application of a secured creditor or asset reconstruction company or any other person interested on such terms and conditions as it may seem to the Central Government, just and expedient, direct that the time for filing of the particulars of the transaction for registration or modification or satisfaction shall be extended or, as the case may require, the omission or misstatement shall be rectified.
- Where the Central Government extends the time for the registration of transaction of security interest or securitization or asset reconstruction or modification or satisfaction thereof, the order shall not prejudice any rights acquired in respect of the property concerned or financial asset before the transaction is actually registered.
Effect Of The Registration Of Transactions
- The legal impact of registration of a charge with the Central Registry is detailed in Section 26C.
- As per Section 26C, Without prejudice to the provisions contained in any other law, for the time being in force, any registration of transactions of creation, modification or satisfaction of security interest by a secured creditor or other creditor or filing of attachment orders shall be deemed to constitute a public notice from the date and time of filing of particulars of such transaction with the Central Registry
- Where security interest or attachment order upon any property in favor of the secured creditor or any other creditor are filed for the purpose of registration under the provisions this Act, the claim of such secured creditor or other creditor holding attachment order shall have priority over any subsequent security interest created upon such property and any transfer by way of sale, lease or assignment or license of such property or attachment order subsequent to such registration.