Read more about The law and you
However, no matter how cautious a bank might be or how creditworthy a customer might seem, the bank is never totally sure that the customer will pay back the loan at the time due. It is for this purpose that the bank usually requires that the customer who is desirous of receiving a loan from the bank provide security from which the bank can recover the money advanced in the event the customer fails to pay back.
Definition
Security is insurance against unforeseen developments, and the last source through which the bank can get its money recovered, should things turn sour. Security provides the banker with something to fall on if every other source fails. Apparently, good security does not promise us that the advance will or will not be bad, nor does its absence actually impair the chance of success of the investment. All it tells us is that should things go the other way, it should be visited and that is why security is seen as a residual factor in lending and the credit decisions are never based solely on the availability of security although good security may assist a marginal proposal.Types Of Bank Securities
The common types of bank securities are a lien, pledge, mortgage, guarantee and indemnity, negative pledge, set-off, and even insurance. But the most commonly used security is a mortgage. Various types of bank securities are explained below:- Lien: In relation to bank securities, a lien is a security giving the banker the right to retain possession of the customer’s property until the money advanced is paid. It is noteworthy that, unlike most bank securities, a banker’s lien is informal security. When it is said that a customer pledges his/her property to the bank as security for a loan, what it means is that the customer makes a physical or constructive transfer of his/her property to the bank to be held by the latter until money owed is absolutely paid. This may be confused with a pledge, but it is not. Unlike mortgage and pledge which are formal securities, a lien is informal security, i.e., as at the time the bank took possession of the property on which it later sets up a lien, there was no intention on the part of either the bank or the customer that the customer was depositing it as security and their right of lien arose only by operation of law. On the other hand, a pledge and mortgage require prior agreement or intention on the part of both parties that the property involved is being passed to the bank as security.
Sign up to the Connect Nigeria daily newsletter
- Negative Pledge: Where a customer undertakes in writing not to charge any of his assets to any other lender without the consent of the banker, there is said to be a negative pledge.
- Guarantee: Sometimes, the bank may require that the customer obtain the commitment of other persons to pay the money advanced in the event that the customer defaults. This form of security is referred to as a guarantee. When a person admits guaranteeing the debt of another, a separate contract is created between that person as guarantor, on the one hand, and the creditor on the other hand. This is a contract of guarantee, and it can be enforced against the guarantor without joining the debtor.
- Set-Off: Where a customer operates more than one account with one bank and one of such account is in debt, the bank may use the credit balance from any of the customers operates two or more accounts with the bank and the payment of due credit facility granted on one of such accounts. This is called set-off.
- Mortgages: Another transaction that can define or redefine the relationship between banks and customers is called a mortgage. The customer/mortgagor is expected to pay back the debt in instalments and the property transferred is considered security for the debt, title of which will revert to the customer upon payment of the full sum agreed upon by the parties. The following are the different terms that are common with mortgage transactions.
- Legal Mortgage: This is created when all legal stipulations for the creation of a mortgage have been met. It is formally created with the consent of the Governor. It has priority over an equitable mortgage.
- Equitable Mortgage: This is an arrangement between the parties without a formal structure of a legal mortgage, but which involves the transfer of property from one party to another, through the deposit of title documents, in exchange for a loan. When this happens, it will be implied that the parties intend to create a relationship of mortgagee and mortgagor between themselves, and the courts will treat them accordingly even in the absence of an express agreement to that effect.
- Foreclosure: The transfer of a property by the mortgagor to the mortgagee is tied to the mortgagor’s indebtedness to the mortgagee, and as soon as the debt has been repaid, the property reverts to the mortgagor. However, where the mortgagor defaults in making the agreed payments, the mortgagee may decide to sell the property in order to satisfy the debt. Thus, the mortgagee exercises a power of sale over the goods which he or she has property in due to the unpaid debt, and the exercise of the mortgagee’s power of sale is called a foreclosure. The power of sale is given to the mortgagee for his own benefit, to enable him to realize his debt.
Conclusion
The debtor-creditor relationship of the bank and its customer will cease to exist where a mortgage transaction is entered into by the parties. However, this may not always be the case as the parties may continue their usual bank-customer relationship and also pursue a mortgagor-mortgagee relationship. As regards the power of sale of a mortgaged property by the mortgagee, it is settled law that the only obligation incumbent on a mortgage is that he should act in good faith as well as conducting the sale as he thinks conducive to his own benefit. Featured Image Source: Secure LoansGot a suggestion? Contact us: editor@connectnigeria.com
You might also like:
- Tips for Managing Your Business’s Financial Records
- Borrowing From Friends or Family? Read This First
- How to Avoid Scams and Fraud in Nigeria
- How Do Companies Make Money from Social Media?
https://drugsoverthecounter.shop/# chlorhexidine mouthwash over the counter
https://over-the-counter-drug.com/# over the counter ed medication
best over the counter toenail fungus treatment over the counter medicine for uti
https://over-the-counter-drug.com/# humana over the counter
over the counter antifungal cream wellcare over the counter ordering
https://amoxil.science/# amoxicillin 500mg buy online uk
https://stromectol.science/# stromectol pill for humans
Get warning information here. Get here.
ivermectin brand
Long-Term Effects. drug information and news for professionals and consumers.
Top 100 Searched Drugs. Everything what you want to know about pills.
https://stromectolst.com/# stromectol 3mg
Everything about medicine. Everything what you want to know about pills.
Get information now. Get information now.
https://stromectolst.com/# ivermectin lice oral
Generic Name. Get here.
Some trends of drugs. Prescription Drug Information, Interactions & Side.
ivermectin buy
Drug information. Drugs information sheet.
Prescription Drug Information, Interactions & Side. Get information now.
ivermectin lotion
Learn about the side effects, dosages, and interactions. Long-Term Effects.
Long-Term Effects. Learn about the side effects, dosages, and interactions.
ivermectin generic
Everything what you want to know about pills. Long-Term Effects.
Read now. Get warning information here.
https://stromectolst.com/# ivermectin over the counter canada
Everything what you want to know about pills. drug information and news for professionals and consumers.
drug information and news for professionals and consumers. safe and effective drugs are available.
ivermectin 6 mg tablets
Prescription Drug Information, Interactions & Side. Best and news about drug.
earch our drug database. Long-Term Effects.
order generic mobic price
Learn about the side effects, dosages, and interactions. Drug information.
Definitive journal of drugs and therapeutics. Medscape Drugs & Diseases.
https://lisinopril.science/# lisinopril 15 mg tablets
Long-Term Effects. Prescription Drug Information, Interactions & Side.
Everything information about medication. Generic Name.
can i purchase cheap levaquin without prescription
Read information now. safe and effective drugs are available.
Some trends of drugs. Some are medicines that help people when doctors prescribe.
lisinopril 5 mg price in india
Get here. Medicament prescribing information.
Actual trends of drug. Read now.
can you get cheap levaquin without insurance
Commonly Used Drugs Charts. Commonly Used Drugs Charts.
Learn about the side effects, dosages, and interactions. Definitive journal of drugs and therapeutics.
https://nexium.top/# where to get cheap nexium pill
Get warning information here. Commonly Used Drugs Charts.
Comprehensive side effect and adverse reaction information. Definitive journal of drugs and therapeutics.
https://levaquin.science/# get generic levaquin
Definitive journal of drugs and therapeutics. Medicament prescribing information.
Read information now. All trends of medicament.
how can i get cheap mobic without rx
Drugs information sheet. Some are medicines that help people when doctors prescribe.
Medscape Drugs & Diseases. Everything about medicine.
buying cheap mobic without a prescription
Everything what you want to know about pills. Get warning information here.
Get warning information here. Everything about medicine.
get mobic online
Learn about the side effects, dosages, and interactions. Best and news about drug.
Best and news about drug. п»їMedicament prescribing information.
where can i buy zithromax capsules
Actual trends of drug. Read now.
Get information now. Get warning information here.
zithromax online usa
Get here. safe and effective drugs are available.
Some are medicines that help people when doctors prescribe. Commonly Used Drugs Charts. amoxicillin 500mg prescription
Everything what you want to know about pills. Get information now.
Everything information about medication. Best and news about drug.
https://clomiphenes.com can i get cheap clomid pills
Some trends of drugs. Read information now.
Get here. Top 100 Searched Drugs.
can you buy generic propecia pills
п»їMedicament prescribing information. safe and effective drugs are available.
safe and effective drugs are available. Some trends of drugs.
can i purchase cheap propecia without dr prescription
safe and effective drugs are available. Learn about the side effects, dosages, and interactions.
Generic Name. п»їMedicament prescribing information.
where buy propecia
Best and news about drug. Get information now.
Everything what you want to know about pills. All trends of medicament. generic amoxicillin cost
Long-Term Effects. Read information now.
Get information now. Read here.
generic zithromax 500mg india
Generic Name. Comprehensive side effect and adverse reaction information.
Drugs information sheet. Medicament prescribing information.
https://clomiphenes.com how to buy cheap clomid
Everything what you want to know about pills. All trends of medicament.
Cautions. What side effects can this medication cause? https://amoxicillins.com/ amoxicillin 500mg capsules price
Drugs information sheet. Learn about the side effects, dosages, and interactions.
Definitive journal of drugs and therapeutics. Drug information.
where to get propecia without rx
safe and effective drugs are available. Drug information.
What side effects can this medication cause? Commonly Used Drugs Charts. amoxicillin 500 capsule
Get information now. Get information now.
Drugs information sheet. Best and news about drug.
get cheap propecia without insurance
п»їMedicament prescribing information. Read here.
Read here. Drug information.
generic zithromax over the counter
Some trends of drugs. Cautions.
п»їMedicament prescribing information. Read now.
https://azithromycins.com/ zithromax for sale 500 mg
Everything information about medication. safe and effective drugs are available.
Drugs information sheet. Drug information.
generic ed drugs
Commonly Used Drugs Charts. Best and news about drug.
Best and news about drug. Medscape Drugs & Diseases.
herbal ed treatment
Everything about medicine. Top 100 Searched Drugs.
Generic Name. drug information and news for professionals and consumers.
best pill for ed
drug information and news for professionals and consumers. Some are medicines that help people when doctors prescribe.
Everything about medicine. earch our drug database.
https://edonlinefast.com non prescription erection pills
Read here. Prescription Drug Information, Interactions & Side.
Everything information about medication. Get information now.
best treatment for ed
Read here. Everything about medicine.
All trends of medicament. Drugs information sheet.
https://clomiphenes.online where can i buy cheap clomid without insurance
п»їMedicament prescribing information. earch our drug database.
Read here. Long-Term Effects.
canadian pharmacy
Everything what you want to know about pills. earch our drug database.
Read here. Medscape Drugs & Diseases.
canadian pharmacy ltd
Everything about medicine. earch our drug database.
Get information now. All trends of medicament.
https://canadianfast.com/# buy prescription drugs without doctor
Learn about the side effects, dosages, and interactions. Cautions.
earch our drug database. Actual trends of drug.
https://canadianfast.com/# buy prescription drugs without doctor
Get here. Comprehensive side effect and adverse reaction information.
Cautions. Everything what you want to know about pills.
https://canadianfast.com/# best canadian online pharmacy
Get warning information here. Get information now.
Medscape Drugs & Diseases. Best and news about drug.
prescription drugs without doctor approval
Read here. Everything what you want to know about pills.
Read now. Definitive journal of drugs and therapeutics.
canadian pharmacy online
Everything about medicine. All trends of medicament.
Actual trends of drug. Read information now.
canadian pharmacy near me
Learn about the side effects, dosages, and interactions. Everything about medicine.
Generic Name. Drug information.
https://canadianfast.online/# pain meds without written prescription
Cautions. Everything about medicine.
Medscape Drugs & Diseases. Actual trends of drug.
prescription drugs without prior prescription
Long-Term Effects. Top 100 Searched Drugs.
Everything about medicine. Definitive journal of drugs and therapeutics.
best canadian pharmacy
Generic Name. Read now.
Comprehensive side effect and adverse reaction information. Everything about medicine.
https://canadianfast.online/# canadian drug
All trends of medicament. Get here.
Learn about the side effects, dosages, and interactions. Learn about the side effects, dosages, and interactions.
https://viagrapillsild.online/# sildenafil 90mg
Top 100 Searched Drugs. Learn about the side effects, dosages, and interactions.
Comprehensive side effect and adverse reaction information. Get information now.
https://viagrapillsild.online/# sildenafil 50mg coupon
Drug information. Commonly Used Drugs Charts.
Read here. п»їMedicament prescribing information.
sildenafil for sale
Medscape Drugs & Diseases. Drug information.
Prescription Drug Information, Interactions & Side. Some are medicines that help people when doctors prescribe.
viagra song
Get information now. Cautions.
Long-Term Effects. Learn about the side effects, dosages, and interactions.
viagra and nitroglycerin
Drug information. Medicament prescribing information.
All trends of medicament. Read here.
https://viagrapillsild.online/# buy sildenafil tablets online
Everything what you want to know about pills. What side effects can this medication cause?
Get warning information here. Some are medicines that help people when doctors prescribe.
cialis los angeles
Get here. What side effects can this medication cause?
drug information and news for professionals and consumers. earch our drug database.
best price tadalafil 20 mg
Get here. earch our drug database.
Drugs information sheet. Medscape Drugs & Diseases.
tadalafil in india online
Read now. Everything what you want to know about pills.
Read information now. Drugs information sheet.
drug categories viagra cialis
Top 100 Searched Drugs. Definitive journal of drugs and therapeutics.
Prescription Drug Information, Interactions & Side. Everything what you want to know about pills.
https://tadalafil1st.com/# generic tadalafil 20mg canada
Everything information about medication. Get information now.
Cautions. Commonly Used Drugs Charts.
tadalafil online cost
Some trends of drugs. drug information and news for professionals and consumers.
What side effects can this medication cause? earch our drug database.
cialis premature ejaculation
All trends of medicament. Top 100 Searched Drugs.
Cautions. drug information and news for professionals and consumers.
can you buy zithromax over the counter in mexico
Long-Term Effects. All trends of medicament.
Get warning information here. Actual trends of drug.
https://zithromaxa.fun/ zithromax 500 mg for sale
Commonly Used Drugs Charts. Long-Term Effects.
pain medications without a prescription treating ed ed cures
dog antibiotics without vet prescription: drug medication – best ed pills
buy prescription drugs online drugs that cause ed home remedies for erectile dysfunction
real viagra without a doctor prescription usa: canadian drug pharmacy – is ed reversible
ed remedies how to get prescription drugs without doctor ed meds online without doctor prescription
drugs and medications ed meds online without doctor prescription best non prescription ed pills
comprar viagra en espaГ±a envio urgente contrareembolso: viagra entrega inmediata – sildenafilo 50 mg precio sin receta
Viagra sans ordonnance 24h Amazon: Viagra homme sans prescription – Viagra vente libre pays
Viagra homme prix en pharmacie sans ordonnance: Viagra vente libre allemagne – Viagra sans ordonnance livraison 48h
viagra online cerca de bilbao: viagra precio 2022 – viagra 100 mg precio en farmacias
Viagra rezeptfreie Schweiz bestellen: Viagra kaufen ohne Rezept legal – Viagra wie lange steht er
viagra online cerca de toledo: Viagra online cerca de Madrid – sildenafilo 100mg sin receta
Viagra pas cher livraison rapide france: Viagra gГ©nГ©rique sans ordonnance en pharmacie – Le gГ©nГ©rique de Viagra
sildenafilo sandoz 100 mg precio: comprar viagra en espaГ±a – viagra online cerca de toledo
sildenafilo 100mg precio espaГ±a: sildenafilo sandoz 100 mg precio – comprar viagra en espaГ±a envio urgente
Viagra vente libre pays: SildГ©nafil 100 mg sans ordonnance – Viagra pas cher paris
sildenafilo 100mg precio espaГ±a: viagra online cerca de malaga – sildenafilo precio farmacia
https://drugswithoutdrprescriptions.com/# mail order prescription drugs
https://drugswithoutdrprescriptions.com/# international pharmacy
https://viasenzaricetta.com/# esiste il viagra generico in farmacia