Legal Question in Credit and Debt Law in Nigeria

i stood as guarantor for a bank loan for my company, using my personal assets as collateral. the company has defaulted and the bank wants to enforce its rights. However the Company has commenced a matter in Court disputing the amount being claimed by the bank for the loan. What can I do in the interim to prevent the bank from removing my property while the substantive matter is pending? Authorities please


Asked on 6/08/15, 7:12 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

08.06.2015

Dear Sir / Madam,

A Guarantor's liability towards loan recovery arises only in the event the principal borrower is declared "insolvent" and unable to settle the loan liability. You should adopt this stance, insisting that the Bank is legally liable to recover its oustanding loan from the disposal of all the principal borrower's assets and property hypothecated and pledged to the Bank.

Regards,

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Answered on 6/08/15, 8:11 am


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