law: Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
  2. Definitions.- 
  1.     
  
    In
  
  this Act, unless the context otherwise requires,-
  a.      Appellate Tribunal
  
  means a Debts Recovery Appellate Tribunal established under sub-section (1) of
  
  section 8 of the Recovery of Debts Due to Banks and Financial Institutions Act,
  
  1993 (51 of 1993)
  b.     asset reconstruction
  
  means acquisition by any securitisation company or reconstruction company of
  
  any right or interest of any bank or financial institution in any financial
  
  assistance for the purpose of realisation of such financial assistance;
  c.      bank means-
                       
  
   i.        
  
    a
  
  banking company; or
                      
  
   ii.        
  
    a
  
  corresponding new bank; or
                     
  
   iii.        
  
    the
  
  State Bank of India; or
                     
  
   iv.        
  
    a
  
  subsidiary bank; or
                      
  
   v.        
  
    such
  
  other bank which the Central Government may, by notification, specify for the
  
  purposes of this Act;
  a.    
  b.    
  c.    
  d.     banking company shall
  
  have the meaning assigned to it in clause (c) of section 5 of the Banking
  
  Regulation Act, 1949 (10 of 1949)
  e.      Board means the
  
  Securities and Exchange Board of India established under section 3 of the
  
  Securities and Exchange Board of India Act, 1992 (15 of 1992)
  f.      borrower 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 and includes a person who becomes borrower of a securitisation
  
  company or reconstruction company consequent upon acquisition by it of any
  
  rights or interest of any bank or financial institution in relation to such
  
  financial assistance;
  g.     Central Registry
  
  means the registry set up or cause to be set up under sub-section (1) of
  
  section 20;
  h.      corresponding new
  
  bank shall have the meaning assigned to it in clause (da) of section 5 of the
  
  Banking Regulation Act, 1949 (10 of 1949)
  i.       Debts Recovery
  
  Tribunal means the Tribunal established under sub-section (1) of section 3 of
  
  the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (51 of
  
  1993)
  j.       default means
  
  non-payment of any principal debt or interest thereon or any other amount
  
  payable by a borrower to any secured creditor consequent upon which the account
  
  of such borrower is classified as non-performing asset in the books of account
  
  of the secured creditor in accordance with the directions or guidelines issued
  
  by the Reserve Bank;
  k.      financial assistance
  
  means 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;
  l.       financial asset means
  
  debt or receivables and includes-
                       
  
   i.        
  
    a
  
  claim to any debt or receivables or part thereof, whether secured or unsecured;
  
  or
                      
  
   ii.        
  
    any
  
  debt or receivables secured by, mortgage of, or charge on, immovable property;
  
  or
                     
  
   iii.        
  
    a
  
  mortgage, charge, hypothecation or pledge of movable property; or
                     
  
   iv.        
  
    any
  
  right or interest in the security, whether full or part underlying such debt or
  
  receivables; or
                      
  
   v.        
  
    any
  
  beneficial interest in property, whether movable or immovable, or in such debt,
  
  receivables, whether such interest is existing, future, accruing, conditional
  
  or contingent; or
                     
  
   vi.        
  
    any
  
  financial assistance;
  a.   
  b.   
  c.   
  d.   
  e.   
  f.   
  g.   
  h.   
  i.   
  j.   
  k.   
  l.   
  m.    financial institution
  
  means-
                       
  
   i.        
  
    a
  
  public financial institution within the meaning of section 4A of the Companies
  
  Act, 1956 (1 of 1956)
                      
  
   ii.        
  
    any
  
  institution specified by the Central Government under sub-clause (ii) of clause
  
  (h) of section 2 of the Recovery of Debts Due to Banks and Financial
  
  Institutions Act, 1993 (51 of 1993)
                     
  
   iii.        
  
    the
  
  International Finance Corporation established under the International Finance
  
  Corporation (Status, Immunities and Privileges ) Act, 1958 (42 of 1958)
                     
  
   iv.        
  
    any
  
  other institution or non-banking financial company as defined in clause (f) of
  
  section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934), which the
  
  Central Government may, by notification, specify as financial institution for
  
  the purposes of this Act;
  a.     
  
  
  b.     
  
  
  c.     
  
  
  d.     
  
  
  e.     
  
  
  f.     
  
  
  g.     
  
  
  h.     
  
  
  i.     
  
  
  j.     
  
  
  k.     
  
  
  l.     
  
  
  m.     
  
  
  n.      hypothecation means a
  
  charge in or upon any movable property, existing or future, created by a
  
  borrower in favour of a secured creditor without delivery of possession of the
  
  movable property to such creditor, as a security for financial assistance and
  
  includes floating charge and crystallisation of such charge into fixed charge
  
  on movable property;
  o.     non-performing asset
  
  means an asset or account of a borrower, which has been classified by a bank or
  
  financial institution as sub-standard, doubtful or loss asset, in accordance
  
  with the directions or under guidelines relating to assets classifications
  
  issued by the Reserve Bank;
  p.     notification means a
  
  notification published in the Official Gazette;
  q.     obligor means a
  
  person liable to the originator, whether under a contract or otherwise, to pay
  
  a financial asset or to discharge any obligation in respect of a financial
  
  asset, whether existing, future, conditional or contingent and includes the
  
  borrower;
  r.       originator means the
  
  owner of a financial asset which is acquired by a securitisation company or
  
  reconstruction company for the purpose of securitisation or asset
  
  reconstruction;
  s.      prescribed means
  
  prescribed by rules made under this Act;
  t.       property means-
                       
  
   i.        
  
    immovable
  
  property;
                      
  
   ii.        
  
    movable
  
  property;
                     
  
   iii.        
  
    any
  
  debt or any right to receive payment of money, whether secured or unsecured;
                     
  
   iv.        
  
    receivables,
  
  whether existing or future;
                      
  
   v.        
  
    intangible
  
  assets, being know-how, patent, copyright, trade mark, licence, franchise or
  
  any other business or commercial right of similar nature;
  a.     
  
  
  b.     
  
  
  c.     
  
  
  d.     
  
  
  e.     
  
  
  f.     
  
  
  g.     
  
  
  h.     
  
  
  i.     
  
  
  j.     
  
  
  k.     
  
  
  l.     
  
  
  m.     
  
  
  n.     
  
  
  o.     
  
  
  p.     
  
  
  q.     
  
  
  r.     
  
  
  s.     
  
  
  t.     
  
  
  u.      qualified
  
  institutional buyer means a financial institution, insurance company, bank,
  
  state financial corporation, state industrial development corporation, trustee
  
  or any asset management company making investment on behalf of mutual fund or
  
  provident fund or gratuity fund or pension fund or a foreign institutional
  
  investor registered under the Securities and Exchange Board of India Act, 1992
  
  (15 of 1992) or regulations made thereunder, or any other body corporate as may
  
  be specified by the Board;
  v.      reconstruction
  
  company means a company formed and registered under the Companies Act, 1956 (1
  
  of 1956) for the purpose of asset reconstruction;
  w.     Registrar of
  
  Companies means the Registrar defined in clause (40) of section 2 of the
  
  Companies Act, 1956 (1 of 1956)
  x.      Reserve Bank means
  
  the Reserve Bank of India constituted under section 3 of the Reserve Bank of
  
  India Act, 1934 (2 of 1934)
  y.      scheme means a scheme
  
  inviting subscription to security receipts proposed to be issued by a securitisation
  
  company or reconstruction company under that scheme;
  z.      securitisation means
  
  acquisition of financial assets by any securitisation company or reconstruction
  
  company from any originator, whether by raising of funds by such securitisation
  
  company or reconstruction company from qualified institutional buyers by issue
  
  of security receipts representing undivided interest in such financial assets
  
  or otherwise;
  za.    securitisation
  
  company means any company formed and registered under the Companies Act, 1956
  
  (1 of 1956) for the purpose of securitisation;
  zb.   security agreement
  
  means an agreement, instrument or any other document or arrangement under which
  
  security interest is created in favour of the secured creditor including the
  
  creation of mortgage by deposit of title deeds with the secured creditor;
  zc.    secured asset means
  
  the property on which security interest is created;
  zd.   secured creditor
  
  means any bank or financial institution or any consortium or group of banks or
  
  financial institutions and includes-
                       
  
   i.        
  
    debenture
  
  trustee appointed by any bank or financial institution; or
                      
  
   ii.        
  
    securitisation
  
  company or reconstruction company; or
                     
  
   iii.        
  
    any
  
  other trustee holding securities on behalf of a bank or financial institution; in
  
  whose favour security interest is created for due repayment by any borrower of
  
  any financial assistance;
  za.   
  zb.   
  zc.   
  zd.   
  ze.    secured debt means a
  
  debt which is secured by any security interest;
  zf.    security interest
  
  means right, title and interest of any kind whatsoever upon property, created
  
  in favour of any secured creditor and includes any mortgage, charge,
  
  hypothecation, assignment other than those specified in section 31;
  zg.   security receipt
  
  means a receipt or other security, issued by a securitisation company or
  
  reconstruction company to any qualified institutional buyer pursuant to a
  
  scheme, evidencing the purchase or acquisition by the holder thereof, of an
  
  undivided right, title or interest in the financial asset involved in
  
  securitisation;
  zh.    sponsor means any
  
  person holding not less than ten per cent. of the paid-up equity capital of a
  
  securitisation company or reconstruction company;
  zi.     State Bank of India
  
  means the State Bank of India constituted under section 3 of the State Bank of
  
  India Act, 1955 (23 of 1955)
  zj.     subsidiary bank shall
  
  have the meaning assigned to it in clause (k) of section 2 of the State Bank of
  
  India (Subsidiary Banks) Act, 1959 (38 of 1959).
  1.     
  
  
  2.     
  
    Words
  
  and expressions used and not defined in this Act but defined in the Indian
  
  Contract Act, 1872 (9 of 1872) or the Transfer of Property Act, 1882 (4 of
  
  1882) or the Companies Act, 1956 (1 of 1956) or the Securities and Exchange
  
  Board of India Act, 1992 (15 of 1992) shall have the same meanings respectively
  
  assigned to them in those Acts.