Using Banking law Jargon, Brent Braxton, Carlyle Christian and Deborah Drummond together provided three separate guarantees in writing to the National Commercial Bank (NCB) of (Your Jurisdiction) Limited, regarding the promissory notes issued by Anthony Limited to NCB. The guarantees were made by Deed for US$200,000 each and clearly stated that if Anthony Limited defaulted on the repayment of the US$200,000 the money would be repaid by each of the guarantors. The NCB has written to BB, CC and DD requesting the repayment of the borrowed sums. However, BB, CC and DD are contending that they are secondarily liable for repayment of the borrowed sums. You have been asked to prepare legal advice for the Board of Directors on this matter. What is the nature of the advice you will give to NCB?
Using Banking law Jargon,
Brent Braxton, Carlyle Christian and Deborah Drummond together provided three separate guarantees in writing to the National Commercial Bank (NCB) of (Your Jurisdiction) Limited, regarding the promissory notes issued by Anthony Limited to NCB. The guarantees were made by Deed for US$200,000 each and clearly stated that if Anthony Limited defaulted on the repayment of the US$200,000 the money would be repaid by each of the guarantors. The NCB has written to BB, CC and DD requesting the repayment of the borrowed sums. However, BB, CC and DD are contending that they are secondarily liable for repayment of the borrowed sums.
You have been asked to prepare legal advice for the Board of Directors on this matter.
What is the nature of the advice you will give to NCB?
Step by step
Solved in 3 steps
