Commentary

7 Security for third party liabilities

BANKING vol 4(1)
| Commentary

7 Security for third party liabilities

| Commentary

7 Security for third party liabilities

It also follows that a deposit of a security with a banker for the liabilities of a third party will require compliance with the Law of Property (Miscellaneous Provisions) Act 1989 section 2(1)1. It will be seen that when a security is given for a third party’s account, whether by way of guarantee or mortgage, there are clauses designed to protect the banker from the competition of the guarantor or mortgagor as a creditor of the principal debtor and to prevent the guarantor or mortgagor from becoming released from his obligations to

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