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Jaugernault Plc borrowed N100 million from Kokote Bank Plc and secured the payment of the loan with a property named in the loan document as the house at No 2, Coconut Avenue, Enugu. The document is expressed to be a deed, and the borrower company does not have the power to manage the house in the ordinary course of business. The house is transferred to Kokote Bank Plc subject to cessation on redemption.
Required:
i. Explain the nature of the security of the indebtedness under insolvency law. (2 Marks)
ii. From the facts, state if it amounts to a mortgage or pledge and indicate the type. (4 Marks)
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Jaugernault Plc borrowed N100 million from Kokote Bank Plc and secured the payment of the loan with a property named in the loan document as the house at No 2, Coconut Avenue, Enugu. The document is expressed to be a deed, and the borrower company does not have the power to manage the house in the ordinary course of business. The house is transferred to Kokote Bank Plc subject to cessation on redemption.
Required:
i. Explain the nature of the security of the indebtedness under insolvency law. (2 Marks)
ii. From the facts, state if it amounts to a mortgage or pledge and indicate the type. (4 Marks)
Find Related Questions by Tags, levels, etc.
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