Carefully read the following scenario and then complete the sentence by selecting the correct options from the terms provided further below. Scenario:

A customer has an unsecured overdraft facility of $10,000 with an exposure of $11,000 and a mortgage of $400,000 on a house with an outstanding amount of $397,500. The customer applies for increased overdraft facilities. Internal bank records indicate that frequent excesses occur on the existing overdraft and the mortgage bond in the personal name of the owner is two months in arrears. Closer investigation has proved that the customer lost his job due to problems with alcoholism.

Complete the sentence:

An increase in the loan facilities of the customer may have regulatory/legislative implications for the bank. It is unknown whether the customer is ______ or not. The bank must first obtain a statement of _______ and ______ from the customer to determine his financial position, since ______ legislation that applies has to be considered. Furthermore, consumer protection legislation could affect the bank adversely since the bank cannot proof that the customer has sufficient ______ to qualify for the increase in loan facilities.

Terms: solvent

repayment ability

labour

repayment ability

collateral

profits

assets

losses

insolvency

liabilities

sober