Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act :

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act ,2002

Act No : 54

Section : Notice to obligor and discharge of obligation of such obligor.

6. Notice to obligor and discharge of obligation of such obligor.-(1) The bank or financial institution may, if it considers appropriate, give a notice of acquisition of financial assets by any securitisation company or reconstruction company, to the con erned obligor and any other concerned person and to the concerned registering authority (including Registrar of Companies) in whose jurisdiction the mortgage, charge, hypothecation, assignment or other interest created on the financial assets had been re istered. (2) Where a notice of acquisition of financial asset under sub-section (1) is given by a bank or financial institution, the obligor, on receipt of such notice, shall make payment to the concerned securitisation company or reconstruction company, as the c se may be, and payment made to such company in discharge of any of the obligations in relation to the financial asset specified in the notice shall be a full discharge to the obligor making the payment from all liability in respect of such payment. (3) Where no notice of acquisition of financial asset under sub-section (1) is given by any bank or financial institution, any money or other properties subsequently received by the bank or financial institution, shall constitute monies or properties hel in trust for the benefit of and on behalf of the securitisation company or reconstruction company, as the case may be, and such bank or financial institution shall hold such payment or property which shall forthwith be made over or delivered to such sec ritisation company or reconstruction company, as the case may be, or its agent duly authorised in this behalf.