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What else can I help you with?
Do you a gree or disagree eith the statement that its necessary to have collateral in place before the provision of finance to the client?
Yes i agree,colateral is a security for the loan and therefore gives the confidence of low default risk in the borrower. That way the borrower may also be given a fair rate of borrowing as well as a good line of credit.
How banks create security on immovable assets?
Banks create security on immovable assets through mortgage agreements, where the borrower provides the property as collateral for the loan. The bank registers a legal charge or lien against the property, giving them the right to seize and sell the property in case of default on the loan. This provides the bank with a level of protection and ensures they can recover their funds if the borrower fails to repay the loan.
Define collateral security?
Collateral security is extra security provided by a borrower to back up his/her intention to repay a loan.
A series of agreements on european security?
Helsinki Accords
What is a legal mortgage?
A legal mortgage is a security interest granted to the lender by the owner of property as a condition of the loan. A note details the specifics of the money being loaned to the borrower. The mortgage refers to a security interest which the borrower grants the lender. The lender takes the security interest so that if the borrower defaults on the loan, the lender can seize the underlying asset (the real property, or home).
What was achieved in collective security agreements?
Collective security agreements give assurance to a country that the other members of the agreement will never attack it. Also, if one country is attacked, the other members of the security agreement will come to its defense.
Can a security or bond pledged be sold by the lender without recourse to the borrower?
Yes.
Where are agreements regarding Security Management recorded?
Capacity plan
What is the simplest form of union security?
A dues check off provision
What is the difference between a primary security and a collateral security?
Primary security is the security someone offered to a bank to cover any risk the bank faces by granting a credit facility to a borrower. However, sometimes a single security may not be sufficient to cover the risk.Example: X bank grants a credit facility of $100 to a borrower called 'B,' and the borrower offers a bare land of $60 to the bank as the security. As you can see, the is bank facing a risk of $40.To cover up the balance of the credit risk, the borrower needs to offer another security. This new security is known as a collateral security.In that case, any security other than the primary security is a collateral security.It is very common that collateral securities are used to cover more than a single credit facility risk. Collateral securities are generally used to cover the balance of the risk, which is unable to cover by primary. However, the actual value of the collateral security is much higher than that. (Example: The borrower 'B' offers a commercial property of $60 as the collateral security of above loan. Now he can apply for another loan by offering the balance of $20 of the same property.)
What is the importance of vat and revenue generation in nigeria?
VAT and revenue are some of the most important sources of funds for the government. The money is used in paying civil servants and provision of services such as security.
Can you explain how collateral works for a loan?
Collateral for a loan is an asset that a borrower pledges to a lender as security for the loan. If the borrower fails to repay the loan, the lender can seize the collateral to recoup their losses. This reduces the lender's risk, making it easier for the borrower to obtain the loan.
