Richard Grandison Stafford is the CEO of the National Bank of (your jurisdiction) Limited. He has been at the helm of that entity since March of 2010. One of the perks of the position is access to mortgage loans at the base rate. In June of 2014, Richard decided to take out a mortgage to purchase his dream home. The Bank loaned him US$900,000 to purchase an executive home located near the capital of your jurisdiction, on 25,000 square feet of land. At the time of the loan the base interest rate was 3% per annum. In April of 2018, Richard stopped paying the loan and in August of 2018 he was suspended from his role as CEO of the Bank. Since then the bank has been in consultations with him to get back the outstanding money. He has only repaid US$260,000. Richard claims that in August of 2018, not 2014, he was approached by Annette Auguste to sign a series of documents. When he enquired what the documents were about he was told that they are required by the Bank's Audit Department. Among them was a document acknowledging his debt to the bank and promising to repay the US$900,000 with interest at a rate of 3% per year, during a 16 year period. He claims that he signed all the documents without reading them and that when he asked Annette whey the document he signed acknowledging the loan was dated 2014 instead of 2018, she said that it was required by the Audit Department. In February of 2020, Richard paid $150,000 into the Bank, telling the teller that it is for his loan. However, no other monies have been paid since. Richard has only repaid US$410,000. In November of 2021, all communications with Richard have broken down and he is no longer responding to calls or emails from the bank. You work in the Legal Department of the Bank and you have been asked to advise on the matter. What is your advice to the Bank with regard to the possibility of the Bank getting back the money owed?
Richard Grandison Stafford is the CEO of the National Bank of (your jurisdiction) Limited. He has been at the helm of that entity since March of 2010. One of the perks of the position is access to mortgage loans at the base rate. In June of 2014, Richard decided to take out a mortgage to purchase his dream home. The Bank loaned him US$900,000 to purchase an executive home located near the capital of your jurisdiction, on 25,000 square feet of land. At the time of the loan the base interest rate was 3% per annum. In April of 2018, Richard stopped paying the loan and in August of 2018 he was suspended from his role as CEO of the Bank. Since then the bank has been in consultations with him to get back the outstanding money. He has only repaid US$260,000. Richard claims that in August of 2018, not 2014, he was approached by Annette Auguste to sign a series of documents. When he enquired what the documents were about he was told that they are required by the Bank's Audit Department. Among them was a document acknowledging his debt to the bank and promising to repay the US$900,000 with interest at a rate of 3% per year, during a 16 year period. He claims that he signed all the documents without reading them and that when he asked Annette whey the document he signed acknowledging the loan was dated 2014 instead of 2018, she said that it was required by the Audit Department. In February of 2020, Richard paid $150,000 into the Bank, telling the teller that it is for his loan. However, no other monies have been paid since. Richard has only repaid US$410,000. In November of 2021, all communications with Richard have broken down and he is no longer responding to calls or emails from the bank. You work in the Legal Department of the Bank and you have been asked to advise on the matter.
What is your advice to the Bank with regard to the possibility of the Bank getting back the money owed?
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