1. Seventeen Ltd is a very successful Internet company runs on software research business. As the market was becoming more competitive, it became a necessary for the company to expand its business as it felt with increased volumes of sales it would be able to lower its prices and be more competitive. Hence the board of directors is considering to raise their capital by making a loan. Hence the board of directors of Seventeen Ltd have passed a resolution to make a loan capital of RM2 millions with a charge of their companys assets to include two buildings, five pieces of lands and all company current and future assets to support their business in a long run. Mohan, the director of the company has come to see Malaya Banking Bhd to apply for the loan.

As the amount is huge, you as legal advisor of the banker must advise the them on what they should do in order to secure the loan. You must also advise them on the bankers rights in case of default of the loan payment.

(30 marks)