True or False Questions

Indicate T for True and F for False.

1. The expanding consumer loan market is contributed from the increased in the middle income class.

2. When the judgement sum is RM40,000, the best means of execution would be through bankruptcy actions.

3. The lower the margin of finance, the more likelihood the borrower will commit to the loan repayment.

4. The credit scoring model is often used by banks nowadays and is applied to evaluate for all kind of loans.

5. Upon redeeming your property that is assigned to the bank, the discharge of charge form will be issued by the lender.

6. For fixed deposit the instrument used to create the security is the Memorandum of Deposit as the stamp duty charge is nominal.

7. The stamp duty charges are revenues to the bank.

8. When the document is not stamped, the agreement is considered null and void and the bank has no recourse against the borrower.

9. When the customer failed to appear in court, the judge will pass consent judgment.

10. The guarantors liability crystallizes upon the default by the borrower.