Notes:

Financial Asset is defined as per Section 2(1)(l), as debt or receivables and includes the following:

a.    A claim to any debt or receivables or part thereof, whether secured or unsecured.

b.    Any debt or receivables secured by mortgage or charge on immovable property.

c.    A mortgage, charge, hypothecation or pledge of movable property.

d.    Any right or interest in the security underlying such debt or receivables.

e.    Any beneficial interest in movable or immovable property or in such debt, receivables, whether such interest is existing, future, accruing, conditional or contingent.

f.     Any beneficial right, title or interest in any tangible asset given on hire or financial lease or conditional sale or under any other contract which secures the obligation to pay any unpaid portion of the purchase price of such asset or an obligation incurred or credit otherwise provided to enable the borrower to acquire such tangible asset.

g.    Any right, title or interest on any intangible asset or licence or assignment of such tangible asset, which secures the obligation to pay any unpaid portion of the purchase price of such intangible asset or an obligation incurred or credit otherwise extended to enable the borrower to acquire such intangible asset or obtain licence of the intangible asset.

h.    Any financial assistance.

Debt is defined as per section 2(1) (ha) of SARFAESI Act: debt shall have the meaning assigned to it in section 2(g) of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (The name of the Act is proposed to be changed to “Recovery of Debts and Bankruptcy Act, 1993” as per the Insolvency and Bankruptcy Code, 2016 but the section of the Code is yet to be made effective) and includes the following:

(i)            Unpaid portion of the purchase price of any tangible asset given on hire or financial lease or conditional sale or under any other contract;

(ii)          Any right, title, or interest on any intangible asset or licence or assignment of such intangible asset, which secures the obligation to pay any unpaid portion of the purchase price of such intangible asset or an obligation incurred or credit otherwise extended to enable the borrower to acquire the intangible asset or obtain licence of such asset.

Debt is defined in Section 2(g) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993: “debt” means any liability (inclusive of interest) which is claimed as due from any person by a bank or financial institution or by a consortium of banks or financial institutions during the course of any business activity undertaken by the bank or the financial institution or the consortium under any law for the time being in force, in cash or otherwise, whether secured or unsecured, or assigned, or whether payable under a decree or order of any civil court or any arbitration award or otherwise or under a mortgage and subsisting on, and legally recoverable on, the date of the application and includes any liability towards debt securities which remains unpaid in full or part after notice of 90 days served upon the borrower by the debenture trustee or any other authority in whose favour security interest is created for the benefit of holders of debt securities.

Security Interest as per Section 2(1)(zf) of SARFAESI Act, means right, title or interest of any kind, other than those specified in section 31 (exclusions to SARFAESI), upon property created in favour of any secured creditor and includes:

(i)            Any mortgage, charge, hypothecation, assignment or any right, title or interest of any kind, on tangible asset, retained by the secured creditor as an owner of the property, given on hire or financial lease or conditional sale or under any other contract which secures the obligation to pay any unpaid portion of the purchase price of the asset or an obligation incurred or credit provided to enable the borrower to acquire the intangible asset; or

(ii)          Such right, title or interest in any intangible asset or assignment or licence of such intangible asset which secures the obligation to pay any unpaid portion of the purchase price of the intangible asset or the obligation incurred or any credit provided to enable the borrower to acquire the intangible asset or licence of intangible asset.

Borrower as per Section 2(1)(f) of SARFAESI Act, means any person who has been granted financial assistance by any bank or financial institution or who has given any guarantee or created any mortgage or pledge as security for the financial assistance granted by any bank or financial institution.

It includes a person who becomes borrower of an asset reconstruction company consequent upon acquisition by it of any rights or interest of any bank or who has raised funds through issue of debt securities.

Originator as per Section 2(1)(r) of SARFAESI Act, means the owner of a financial asset which is acquired by an asset reconstruction company for the purpose of asset reconstruction.

Financial Assistance (Section 2(1)(k): Any loan or advance granted or any debentures or bonds subscribed or any guarantees given or letters of credit established or any other credit facility extended by any bank or financial institution including funds provided for the purpose of acquisition of any tangible asset on hire or financial lease or conditional sale or under any other contract or obtaining assignment or licence of any intangible asset or purchase of debt securities;