n Without Prejudice - A false sense of security : financial law
|Article Title||A false sense of security : financial law|
|© Publisher:||JetBlue Publishers (Pty) Ltd|
|Author||Chesley Brighton Mnisi|
|Publication Date||Jul 2015|
|Pages||68 - 69|
Lending institutions often require security before they can advance credit to either a juristic or natural person. The purpose of the security is to ensure that the lending institution can recover the debt should the debtor default in repaying the debt, or at least that is what we all want to believe. There are various methods through which a debt can be secured. These methods include amongst others, mortgage bond, notarial bond, pledge, suretyship and cession, to mention but a few. In this article I will only look at notarial bonds as a method of security and explore whether it provides sufficient security to lenders.
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