General Studies · Principles of Banking and Charges on Securities

Consider the following statements regarding banker-customer relationships and creation of charges: Statement I: In a Banker's Lien, the bank has the right to retain goods and securities belonging to a debtor until the debt is discharged, and this right extends to properties deposited for a specific purpose, such as safe custody. Statement II: The Right of Set-off allows a bank to combine two or more accounts of the same customer to adjust a debit balance in one against a credit balance in another, provided the accounts are held in the same right and capacity. Statement III: A General Lien under Section 171 of the Indian Contract Act is available to bankers, allowing them to retain any goods bailed to them as security for a general balance of account. Statement IV: The Clayton's Case rule applies to running accounts like Cash Credit, where the first item on the credit side is applied to discharge the first item on the debit side in a chronological order. Statement V: When a bank creates a charge by Pledge, the ownership of the goods passes to the bank, while the possession remains with the borrower for the purpose of trade. Which of the above statements are correct?