Question
Mike has an existing overdraft with a limit of $220,000. He wishes to increase the limit to $300,000 due to an expansion of his financial
Mike has an existing overdraft with a limit of $220,000. He wishes to increase the limit to $300,000 due to an expansion of his financial planning business. So far this business has been very successful. He also wishes to obtain an unsecured personal loan for $75,000 to purchase a new car. He visits The Bank to arrange finance. You Boss is worried that this loan may be risky due to the downturn in the local economy caused by Covid 19, and the potential affect on the financial planning business is currently unknown.
Which is the correct answer?
(a) The NCC/NCCP Acts do not apply to either the overdraft extension or the unsecured loan.
(b) The NCC/NCCP Acts does apply, but you should not extend the overdraft because it would be
"irresponsible".
(c) The NCC/NCCP Acts does apply, but the loan for the new car will be "irresponsible".
(d) None of the above answers are correct.
*It can have more than 1 correct answer
*Explain your answer
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Law Express Constitutional And Administrative Law
Authors: Chris Taylor
6th Edition
1292210109, 978-1292210100
