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5. Mac Investments Pty Ltd [MI) received a call from Como Bank Ltd (Como]. It was concerned about lending a substantial sum of money to

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5. Mac Investments Pty Ltd [MI) received a call from Como Bank Ltd (Como]. It was concerned about lending a substantial sum of money to Bankers Trust Pty Ltd (BT), a subsidiary com- pany of MI. In the wake of the 2009 Global Financial Crisis, the parent company was aware that BT needed to borrow funds to continue trading in the securities and futures market and wrote a letter to Como in the following terms: MI supports the loan to BT and undertakes to ensure that it remains in a position to repay the loan. BT subsequently defaults on the loan and Como looks to MI to compensate it for its losses. Advise Como of its rights and explain how it might better protect itself in the future

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