Jeremy Johnson has maintained an account at your bank for several years. You have very little detailed information on file concerning him but you are aware that he has business interest in Castries, he is a director of three companies and from time to time sits on boards of enquiry set up by government. No regular credits are seen in his account but over the past year, credits amounting to $25,000 have been received including six dividend warrants totaling near $7,500 Some nine months ago, your institution wrote to Mr. Johnson suggesting that the dividends be mandated direct to his account, but there has been no response to the letter. Over two years ago Mr. Johnson wrote to you regarding a credit card issued by your bank. Later a formal application was received from him; you approved the application and a new card was issued. As part of this facility an unsecured overdraft limit of $7,500 was recorded in Mr. Johnson's account. Today you received a letter from Mr. Johnson enclosing a cheque for $20,000 drawn in his favour by a firm of lawyers and three share certificates, all drawn in his name with a market value of $80,000. He explains that he is involved with a group of investors, they are about to complete the purchase of a business in another island but at this moment he can give no details. He is therefore likely to issue a cheque over the next week for $100,000 and asks you to arrange to increase his overdraft by $75,000 Statistics of Mr Johnson's account over the past three years are as follows: Year LOW Dr High ($) Average ($) Turnover 21,400 1998 7,300cr 1999 6,300cr 2000 6,300cr 2001(8mth) 4,700cr 1,600dr 4,800dr 4,900dr 2,400cr 1,800cr 1,600cr 24,100 22,800 13,700 5,300dr 900cr Your task: Set out in detail your reply to Mr. Johnson. Jeremy Johnson has maintained an account at your bank for several years. You have very little detailed information on file concerning him but you are aware that he has business interest in Castries, he is a director of three companies and from time to time sits on boards of enquiry set up by government. No regular credits are seen in his account but over the past year, credits amounting to $25,000 have been received including six dividend warrants totaling near $7,500 Some nine months ago, your institution wrote to Mr. Johnson suggesting that the dividends be mandated direct to his account, but there has been no response to the letter. Over two years ago Mr. Johnson wrote to you regarding a credit card issued by your bank. Later a formal application was received from him; you approved the application and a new card was issued. As part of this facility an unsecured overdraft limit of $7,500 was recorded in Mr. Johnson's account. Today you received a letter from Mr. Johnson enclosing a cheque for $20,000 drawn in his favour by a firm of lawyers and three share certificates, all drawn in his name with a market value of $80,000. He explains that he is involved with a group of investors, they are about to complete the purchase of a business in another island but at this moment he can give no details. He is therefore likely to issue a cheque over the next week for $100,000 and asks you to arrange to increase his overdraft by $75,000 Statistics of Mr Johnson's account over the past three years are as follows: Year LOW Dr High ($) Average ($) Turnover 21,400 1998 7,300cr 1999 6,300cr 2000 6,300cr 2001(8mth) 4,700cr 1,600dr 4,800dr 4,900dr 2,400cr 1,800cr 1,600cr 24,100 22,800 13,700 5,300dr 900cr Your task: Set out in detail your reply to Mr. Johnson