AdvertisementSummary: The article explains the relationship between NPA classification, guarantor liability and enforcement under the SARFAESI Act, 2002. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) is an important statutory mechanism for enforcement of security interest. This article focuses on the practical relationship between NPA classification, guarantee liability and SARFAESI enforcement. Recovery Planning Before an Account Becomes an NPAA sound recovery strategy should not wait for the date of NPA classification. A personal guarantee, by itself, does not create a mortgage, charge or other security interest over the guarantor’s unencumbered personal property.