Banking · Legal Framework of Banking

Statement 1: A Banker's General Lien is governed by Section 171 of the Indian Contract Act 1872 and entitles a banker to retain, in the absence of a contract to the contrary, any goods and securities bailed to them for a general balance of account. Statement 2: The Right of Appropriation under Sections 59 to 61 of the Indian Contract Act allows a debtor to specify which debt a payment should be applied to, and if the debtor fails to do so, the creditor (bank) has the right to apply it to any lawful debt, including a time-barred one. Statement 3: The Right of Set-Off can be exercised by a bank even on a Contingent Liability or a future debt that has not yet matured, provided the bank gives a 14-day notice to the customer. Statement 4: For a charge of Hypothecation to be legally valid against a liquidator in the case of a company's winding up, it must be registered with the Registrar of Companies within 30 days of creation under Section 77 of the Companies Act 2013. Statement 5: A Mortgage by Deposit of Title Deeds (Equitable Mortgage) is valid as per the Transfer of Property Act 1882 in specified towns, and its extension to other towns requires a notification in the Official Gazette. Statement 6: In a Pledge, if the goods are lost due to the bank's negligence, the bank is liable for the loss, but the underlying debt is not extinguished and remains payable by the borrower. Statement 7: An Assignment of a actionable claim/debt is not valid unless it is in writing and signed by the assignor, as per Section 130 of the Transfer of Property Act. Which of the following options represents the correct assessment of these statements?