Visvesvaraya Technological University (VTU) 2007 M.B.A 05 BI 476 LEGAL ASPECTS OF BANKING MODEL I - Question Paper

Fourth semester of MBA MODEL ques. paper I
05 MBA BI 476 LEGAL ASPECTS OF BANKING
Time: three hours Max marks: 100
Note: 1. ans any 5 full ques. including ques. No eight which is
Compulsory
2. All main ques. carry 20 marks every
1. a) What is the jurisdiction of District Forum under COPRA act? (3 marks)
b) explain the role of RBI and Government of India as regulators of banks (7 marks)
c) describe the term mortgage. discuss different kinds of mortgages. What is the
difference ranging from equitable and legal mortgage? (10 marks)
2. a) What is the role of Central Registry under SARFAESI act 2002? (3 marks)
b) discuss the various kinds of credit facilities extended by banks. (7 marks)
c) What is a bank guarantee? discuss the kinds of bank guarantees
issued by banks . What is invocation of bank guarantee? (10 marks)
3. a) discuss Supply Bills as a credit facility. (3 marks)
b) discuss the recovery steps a bank resorts to under SARFAESI act 2002? (7 marks)
c) elaborate the provisions of Banker’s Books Evidence Act applicable to (10 marks)
banks?
4. a) elaborate the bank licensing requirements under part 22 of RBI act? ( three marks)
b) What is the procedure followed by Debt Recovery Tribunals for
dealing with the cases before them? ( seven marks)
c) describe indemnity. How is contract of indemnity various
from contract of guarantee? elaborate the rights of an indemnity holder? (10 marks)
5. a) What is the difference ranging from secured loans and unsecured loans? (3marks)
b) What is the procedure for filing complaint before banking Ombudsman?
elaborate the powers of a Banking Ombudsman? ( seven marks)
c) discuss the different modes of creating charges as securities against the
loans and advances. (10 marks)
6. a) What do you mean by joint and several liability of a partner? (3 marks )
b) elaborate the responsibilities of paying banker and collecting banker
under Negotiable Instrument Act? ( seven marks)
c) elaborate the provisions of RBI act and banking regulation act affecting
banking companies? ( 10 marks)
7. a) discuss the term actionable claim. (3 marks)
b) discuss the different kinds of borrowers whom bankers entertain in their (7 marks)
course of lending operations
c) What is a letter of credit? Who are the parties to a letter of credit? (10 marks)
discuss different kinds of letters of credit in usage
8. Case study on Charging of Securities (Lien, set-off, appropriation) (5 marks for theory
(15 marks for case)

Earning:   Approval pending.