Explain the reasoning in brief on the following statements: "Enforcement of Security Interest" is important for recovery of the bank's bad loans.

The objective of enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 was to regulate securitization and reconstruction of financial assets and the enforcement of security interest and also for the matters connected therewith or incidental thereto. The following are the important aspects of the SARFAESI Act: This Act empowers the banks and financial institutions to recover their dues in Non-Performing Asset (NPA) accounts, without the intervention of a court. This Act also authorizes the banks and financial institutions to issue notice for recovery from the defaulting borrowers and guarantors, calling upon them to discharge the dues in full within 60 days. In case the borrower and / or guarantor fails to fulfil the 60 days' notice issued by the bank or financial institution in repayment of full dues, then the bank and or financial institution can: Take the possession or the management of secured assets of the borrower, and also can transfer the same by way of lease, assignment or sale for realizing the secured assets without the intervention of a court / Debts Recovery Tribunal. Appoint any person to administer the secured assets which have been taken over by the secured creditor (bank). Instruct at any time by a notice in writing to a person as follows: Who holds secured assets of the Borrower? From whom any money due or becoming due to the borrower. To pay such money to the secured creditor.