It is a brief case, we have to answer using the IRAC method. Giving the ISSUE, RULE, Analysis and Conclusion

1. Mary Melancholy and Carla Happy have put together a business plan for a restaurant in Millaville, which they plan to call Happyville. They plan to form a private limited company with equal amount of shares. The business plan requires start-up capital of EC$200,000. Ms. Melancholy has EC$40,000 in cash that she wishes to inject in the business. Ms. Happy has EC$20,000 that she plans also to inject in the business thus they require EC$ 140,000. The partners intend to seek a loan from National Bank of Millaville ("NBM) in the amount EC$150,000. They ask for an extra EC$10,000.00 beyond the $ 140,000.00 that was required under the business plan as a contingency fee to cover any unforeseen expenses that were not included in the business plan. 2. Ms. Melancholy has a small vacant plot of land which is measures 2,500 sq.ft. in a remote area of the island valued at EC$40,000 with no encumbrances. The Bank's policy is a loan to value ratio of 60% thus Ms. Melancholy can only get EC$24,000 using this plot of land as collateral. 3. However, Ms. Happy is the only relative of Paul Happy, one of Millaville's ten millionaires. Mr. Happy is a retired 90 year old businessman who lives in a massive mansion in Richman's Point, an upscale residential area in Millaville. As Mr. Happy's only living relative, Ms. Happy expects to inherit all of his wealth and assets upon his death. Mr. Happy's mansion is valued at EC$2,500,000.00. Ms. Happy therefore wants to use this property as security for the loan. Mr. Happy wants to assist Ms. Happy who is his niece and has agreed to have the property used as security. 4. Mr. Happy signed the mortgage and the loan process was successful. The entire loan procedure was handled by Mr. Happy's neighbor, Ms. Riana Umbrella, Senior Loans Officer at NBM. The Bank's Solicitor, Ms. Triana Floryn called the house of Mr. Happy to inform him that the transaction was complete and assuming that she was speaking to him, discussed the details of the loan transaction. However, in fact, she spoke to Mr. Michael Turncoat, Mr. Happy's butler, who became incensed at the information. He informed her that Mr. Happy suffered from Alzheimer's and that under Mr. Happy's will he would inherit the mansion as payment for his dedicated service over the years. Further, Mr. Turncoat has now approached the Bank Manager indicating his displeasure with the loan transaction and his intention to sue the bank for failing to act properly. You are a law student attached to the Millaville Law Chambers ("MLC') and you are required to advise NBM outlining the issues, your analysis and your recommendations. 1. Mary Melancholy and Carla Happy have put together a business plan for a restaurant in Millaville, which they plan to call Happyville. They plan to form a private limited company with equal amount of shares. The business plan requires start-up capital of EC$200,000. Ms. Melancholy has EC$40,000 in cash that she wishes to inject in the business. Ms. Happy has EC$20,000 that she plans also to inject in the business thus they require EC$ 140,000. The partners intend to seek a loan from National Bank of Millaville ("NBM) in the amount EC$150,000. They ask for an extra EC$10,000.00 beyond the $ 140,000.00 that was required under the business plan as a contingency fee to cover any unforeseen expenses that were not included in the business plan. 2. Ms. Melancholy has a small vacant plot of land which is measures 2,500 sq.ft. in a remote area of the island valued at EC$40,000 with no encumbrances. The Bank's policy is a loan to value ratio of 60% thus Ms. Melancholy can only get EC$24,000 using this plot of land as collateral. 3. However, Ms. Happy is the only relative of Paul Happy, one of Millaville's ten millionaires. Mr. Happy is a retired 90 year old businessman who lives in a massive mansion in Richman's Point, an upscale residential area in Millaville. As Mr. Happy's only living relative, Ms. Happy expects to inherit all of his wealth and assets upon his death. Mr. Happy's mansion is valued at EC$2,500,000.00. Ms. Happy therefore wants to use this property as security for the loan. Mr. Happy wants to assist Ms. Happy who is his niece and has agreed to have the property used as security. 4. Mr. Happy signed the mortgage and the loan process was successful. The entire loan procedure was handled by Mr. Happy's neighbor, Ms. Riana Umbrella, Senior Loans Officer at NBM. The Bank's Solicitor, Ms. Triana Floryn called the house of Mr. Happy to inform him that the transaction was complete and assuming that she was speaking to him, discussed the details of the loan transaction. However, in fact, she spoke to Mr. Michael Turncoat, Mr. Happy's butler, who became incensed at the information. He informed her that Mr. Happy suffered from Alzheimer's and that under Mr. Happy's will he would inherit the mansion as payment for his dedicated service over the years. Further, Mr. Turncoat has now approached the Bank Manager indicating his displeasure with the loan transaction and his intention to sue the bank for failing to act properly. You are a law student attached to the Millaville Law Chambers ("MLC') and you are required to advise NBM outlining the issues, your analysis and your recommendations