Alagappa University 2007 B.B.M PRACTICE AND LAW OF BANKING — II - Question Paper

DISTANCE EDUCATION
B.B.M. DEGREE EXAMINATION, DECEMBER 2007.
PRACTICE AND legal regulations OF BANKING — II
Time : 3 hours Maximum : 100 marks
PART A — (6 ? five = 30 marks)
ans any 6 ques..
All ques. carry equal marks.
every ans should not exceed a page.
1. Distinguish ranging from secured and unsecured advances.
2. Explain the characteristics of a mortgage.
3. State the advantages of accepting guarantee as security for a loan.
4. Explain the Banker’s right against surety.
5. Explain the various kinds of loans and advances provided by the banker.
6. Write a short note on NPAs.
7. What do you understand by industrial sickness? discuss the causes of industrial sickness.
8. How does follow-up differ from supervision of the banker?
9. Under what circumstances would a payment of interest on debt extend the period of limitation?
PART B — (5 ? 14 = 70 marks)
ans any 5 ques..
All ques. carry equal marks.
every ans should not exceed three pages.
10. Explain the various forms of banker’s advances.
11. Describe the different kinds of securities and methods of charging them to cover bank advances.
12. State the precautions which must be taken in advancing loan against (a) book debt and (b) real estate.
13. How do the banks appraise the credit proposals?
14. As a banker, how would you make an appraisal for sanctioning a loan?
15. What precautions should a banker take while lending against documents of title to goods?
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Earning:   Approval pending.