Important definitions of SARFAESI Act,2002 Asset Reconstruction:- Acquisition of any right or interest, of any bajk or financial institution in any financial assistance by any securitisation company or reconstruction company for the purpose of realization of such financial assistance Bank All the banking companies, nationalized banks, state bank of india, co-operatives excluding RRbs

Central registry:- Registering office set up or caused to be setup by the central government. With this set all the transactions of asset securitisation, reconstruction as well as transactions of creation of security Originator:-Originator is the owner of a financial asset that is acquired by a securitisation company or reconstruction company fr the purpose of securitisation or asset reconstruction obligor:- A person liable to pay to the originator

Registration of securitisation company or reconstruction company The securitisation company or reconstruction company can commence or carry business only on complying two conditions:- It obtains certificate of registration from the reserve Bank of India by applying in prescribed format It has the owned funds not less than Rs. 2 crore or such other amount not exceeding 15% of total financial assets acquired or to be acquired as the RBI may specify.

Acquisition of rights or interest in financial assets. The securitisation company or reconstruction company can acquire financial assets of any bank or financial institution by following ways :- By issuing debenture or bond or any other security in the nature of debenture for agreed consideration and agreed terms and conditions between the bank/financial institution and securitisation company/reconstruction company

By entering into as agreement with such bank or financial institution for the transfer of fiancial assets to such company on terms and conditions as may be agreed between them. Securitisation company or reconstruction company can acquire financial assets without execution of any deed of assignment or transfer in its favour by the concerned bank or the financial institution

When the bank or financial institution decides that the financial assets be now acquired by the securitisation company or reconstruction company a notice may be given about such acquisition to the obligor i.e.borrower or any other person liable to repay to the bank or financial institution