Question 3 Victor and Hugo are the directors of Sea Yacht Pty Ltd= which distributes and sells yachting clothing and equipment. The company also owns a warehouse, three retail stores and a large block of land in Manly. Victor is the chairman and majority shareholder in ED Pty Ltd. ED Pty Ltd needs to borrow $1.5 million to fund its latest mining venture. However banks were not willing to provide the loan without any securities due to the bad credit of ED Pty Ltd. Victor. using his connection organises a loan of $1.5 htllion to ED Pty Ltd from Com Bank on the basis that Sea Yacht Pty Ltd would guarantee the loan by executing a mortgage over its Mendy property. Victor signs the mortgage document as director of Sea Yacht Pty Ltd and forges Hugo's signature. The Bank manager= Tim did not ask anyr questions about Sea Yacht Pty Ltd's involvement even iough Tim was aware that the company's business centered on distributing and selling yachting clothing and equipment and not mining. After a couple of