- 30 Marks
CORPORATE BANKING LAW AND PRACTICE – APRIL 2024 – LEVEL 4 – Q1 – Realization of Collateral without Court Order and Distribution of Proceeds
Outline the steps for a lender to realize collateral without a court order using BOG Notice and Act 1052, and explain the distribution of sale proceeds under Section 70(1).
Question
a. Rule 15 of BOG Notice No. BG/GOV/SEC/2021/07 introduced by the Bank of Ghana pursuant to Section 77 of the Borrowers and Lenders Act, 2020 (Act 1052) for the effective implementation of the Act, provides for the realization of collateral by a lender without a court order upon a borrower’s default. Using the BOG Notice and Section 62(1) of Act 1052, outline the steps a lender must take to realize collateral without a Court Order. (20 Marks)
b. Section 70(1) of the Borrowers and Lenders Act, 2020 (Act 1052) provides for the distribution of proceeds of the sale of collateral by a lender. Outline how the sales proceeds are distributed when the collateral is realized. (10 Marks) [Total = 30 Marks]
Find Related Questions by Tags, levels, etc.
Report an error
