In January 2021, seeing the business savvy of Patrick in the middle of the pandemic, Sebastian decided to invest to TOP GUN Amusement Enterprises in the amount of PhP 6 million. Patrick proposed the inclusion of Sebastian in the partnership. All the partners agreed.

Patrick seeing additional business prospects in the horizon, decided to enter into a PhP 31 million loan from Solid SouthNorth Rural Bank. The loan was approved in April 2021.

In June 2021, Taal Volcano exploded which wiped out the office building and covered the farm land of TOP GUN Amusement Partnership. Only the service vehicle that was used to evacuate all the employees of the company was save. All the other properties were destroyed.

Despite this, Patrick remained adamant that the company will survive the challenges and decided to recruit additional investors. They were able to convince Peter, Steven and Wanda to invest 6 million each.

Peter, Steven and Wanda, known billionaires, have money to spare and believe in the capability of Patrick and TOP GUN Amusement Enterprises and are insistent on investing. However, they are worried that their personal properties of might be at risk because earlier that year, Patrick already got a loan from Solid NorthSouth Rural Bank. If you were asked by Peter, Steven and Wanda, how would you secure their investment?

Solid NorthSouth Rural Bank conducted an enterprise risk assessment and one of their identified risk is the loan it extended to TOP GUN Amusement Enterprises. They sought your opinion as to whether they can also go after Sebastian, Peter, Steven and Wanda if the company fails to pay the loan. What will be your advice and why?