Law · Banking Documentation Framework

Evaluate the following statements regarding the technicalities of document execution in banking: Statement 1: Documentation creates a legal link between the bank and the borrower through instruments like the Demand Promissory Note, Hypothecation Agreement, and Mortgage Deeds. Statement 2: A Demand Promissory Note (DPN) must be stamped with adhesive revenue stamps of the correct denomination as per the Indian Stamp Act. Statement 3: Execution of a document means signing by the parties, and for companies, it must be signed by authorized directors and may require a common seal if mandated by the Articles of Association. Statement 4: Mortgage by Deposit of Title Deeds (Equitable Mortgage) is highly preferred by banks as it avoids registration in many notified towns, saving stamp duty. Statement 5: The Doctrine of Indoor Management protects the bank, allowing it to assume internal procedural compliance by a company. Statement 6: Attestation by witnesses is a mandatory legal requirement for a Mortgage Deed or a Will, but not for a Hypothecation Agreement. Statement 7: Digital Documentation using NeSL integrates e-signed documents with e-stamping, ensuring equivalent legal validity to physical documents. Which of the following evaluations is correct?