B.B.M-B.B.M PRACTICE AND LAW OF BANKING II (Alagappa University - Directorate of Distance Education-2012)

DISTANCE EDUCATION
B.B.M. DEGREE EXAMINATION, MAY 2012.
PRACTICE AND LAW OF BANKING – II
Time : Three hours Maximum : 100 marks
PART A — (5 × 8 = 40 marks)
Answer any FIVE questions.
1. How does the principles of liquidity of bank lending help a banker?
2. Distinguish between loans and overdrafts.
3. ‘Bankers’ lien is tantamount to an implied pledge’’. – Discuss.
4. State the advantages of accepting guarantee as security for a loan.
5. What are the causes for NPA?
6. Write the documents that are associated with the secured advances.
7. What is meant by industrial sickness?
8. What is right of subrogation?
PART B — (4 × 15 = 60 marks)
Answer any FOUR questions.
9. Discuss in detail the significance of lien to a banker.
10. Explain the main differences between pledge andhypothecation.
11. State the advantages of accepting guarantee as security for a loan.
12. Explain the principles of sound lending briefly.
13. What is meant by industrial sickness? What are the remedial measures would you take to prevent the same?
14. What are the documentation in respect of various types of borrowers and securities?
15. Explain the various aspects of financial and technical appraisal.

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