(1) The bank or financial institution may, if it considers appropriate, give a notice of acquisition of financial assets by any *[asset reconstruction company], to the concerned 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 registered. (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 *[asset reconstruction company], as the case 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 held in trust for the benefit of and on behalf of the 2[asset 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 *[asset reconstruction company], as the case may be, or its agent duly authorised in this behalf.
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*Subs. by Act 44 of 2016, s. 3, for "securitisation company or reconstruction company" (w.e.f. 1-9-2016)
Section 3 Registration of asset reconstruction companies
Section 4 Cancellation of certificate of registration
Section 5 Acquisition of rights or interest in financial assets
Section 5A Transfer of pending applications to any one of Debts Recovery Tribunals in certain cases
Section 6 Notice to obligor and discharge of obligation of such obligor
Section 7 Issue of security by raising of receipts or funds by asset reconstruction company
Section 8 Exemption from registration of security receipt
Section 9 Measures for assets reconstruction
Section 10 Other functions of asset reconstruction company
Section 11 Resolution of disputes
Section 12 Power of Reserve Bank to determine policy and issue directions
Section 12A Power of Reserve Bank to call for statements and information
Section 12B Power of Reserve Bank to carry out audit and inspection