Albert, Donald, and Sally are the directors and shareholder owners of ADS Engineering Ltd. The company supplies machine parts, tools, and conveyor belts to the food manufacturing sector. The company gives customers three months' credit after presentation of invoices. It also owns a factory and an adjoining piece of land on which it has taken a lease on a warehouse in which it routinely carries significant amounts of stock which is highly volatile in quality and value. The company also recently bought a piece of high-tech equipment; this has a high value and is secured by a charge in favour of the lender which financed the purchase. In addition to their shares in ADS Engineering Ltd, the directors also own, in personal capacities, shares in leading stock market-quoted companies. Albert and Sally are 'high net worth' individuals, but Donald has been a previous bankrupt, mainly because of his association with a fraudulent business which went into liquidation, owing creditors thousands of pounds. The directors also have life assurance policies in their own names for the benefit of their partners. Albert, Donald, and Sally have now approached you as the Loan Review Officer for a leading highstreet bank. They want to borrow a significant amount of money to finance expansion of the business. Based upon the company's characteristics, assets, and trading behaviour, and the personal circumstances of the directors, discuss the forms of security which you will require in respect of any loan. In your discussion you should discuss the risks associated with each form of security, and relevant procedures for taking it.