- 30 Marks
CBLP – APRIL 2024 – L4 – Q6 – Advising Corporate Customer on Preserving Judgment and Borrower Information Memorandum in Loan Syndication
Advise a corporate customer on steps to prevent a potential judgment from becoming nugatory by freezing defendant's assets, and state the contents of a typical Corporate Borrower Information Memorandum in loan syndication.
Question
a). HAKUNA MATATA COMPANY LIMITED is a Private Limited Liability Company that operates an account with the Spintex Road Branch of your Bank. You are the Corporate Relationship Manager of the account, which is a very active one at the Branch. Today, Mr. Hakuna Matata visits your office and informs you that the Company is in court with Kofi Brokeman, whom he has sued for breach of contract. He tells you that the civil trial is far advanced and that he has a very realistic chance of getting a judgment in favour of the Company. He is, however, worried that before the conclusion of the trial, Kofi Brokeman may move out of Ghana to frustrate the execution of the judgment, funds held in QUE SERA SERA Bank, which the Company could fall on for the satisfaction of any judgment debt, if a verdict goes in favour of the Company. He is worried that without any assets of Kofi Brokeman to fall on, a judgment in favour of the Company may be futile. Explain in detail, the steps you will advise your corporate customer to take in order not to render his expected judgment nugatory. (10 Marks)
b). Briefly state the contents of a typical Corporate Borrower Information Memorandum in Loan Syndication. (10 Marks)
[Total = 20 Marks]
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