- 20 Marks
PBL – OCT 2022 – L3 – Q7 – Legal Mortgage over Leasehold Interest
Outline key considerations for taking a legal mortgage over leasehold property and steps to perfect it for a sole proprietorship loan.
Question
Amoasi Enterprise is a sole proprietorship owned and controlled by John Amoasi. The business is engaged in the supply of chips and stones for building projects. John Amoasi has applied for a loan of GHC 500,000 for the purchase of a used tipper truck. He shows you an Indenture covering his Leasehold interest in a property located a Winneba valued GHC 1,000,000.00.
(a) What key consideration would you have in mind in taking a legal mortgage over a leasehold interest? [8 Marks]
(b) Outline the steps which you would take to acquire a legal mortgage over the property in such a manner that the bank’s interest is absolutely protected. [12 Marks]
[Total marks:20]
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