There were two neighbours who were good friends. One would often borrow money from the other for business purposes. The loans were never documented. On this occasion, the borrower requested $500K to start a frozen custard franchising business. It was done on a hand shake between the borrower and his son and the lender. 10 …
A borrower on a disability pension was conned by a loan originator to borrow against his home to make an investment that would pay off his remaining mortgage of $15,000 and give him a good return. The originator included false documents in the loan application for $240,000, including a false valuation. The investment was made, …
The lender had brought proceedings against two solicitors arising out of a loan and mortgage transaction. The borrower had defaulted on the loan, but the lender had not been able to enforce the mortgages as they had been forged. He had been unsuccessful in proceedings against the third party mortgagor and had then brought proceedings …
A husband and wife advanced their friend’s son $300K for his panel beating business. The monies were in fact used in a get rich quick scam. When the lenders sued for the debt, the son raised multiple defences including that it was not his deed because of a lack of literacy and/or his education and …
The lawyers acted for the vendor on the sale of a property. Half the purchase price was paid on settlement of the sale of the property with the balance to be paid in the following thirty months. The balance was secured by a second mortgage and third and fourth mortgages over other properties. The purchaser …
The borrowers sought to set aside a mortgage taken over the family home in 1988. The lender sought to enforce the mortgage. The interest rate on the mortgage was 20% per annum. This was not unusual, at the time of the loan the interest-rate on Court judgments was 18% per annum. The mortgage contained a …
This involved a mortgage by a father and mother to their daughter and son-in-law. Under the mortgage the borrowers were jointly and severally liable. The loan was repayable upon written demand being made and it was expressly agreed that if the daughter and son-in-law got divorced the loan would be called up. The borrowers separated …
In this case the lender sought to extend a caveat protecting a loan for $400,000. The court determined that because the loan was over six years old its recovery was statute barred. this was because the loan was repayable “at call”. Where a loan is repayable at call the statute of limitations begins to run …
The borrower successfully defeated possession proceedings in the Appeal Court on the grounds that they were brought without a notice pursuant to the s 7 Credit (Home Finance Contracts) Act 1984 first being served one month prior to the institution of the proceedings. This was the lender’s second attempt to eject the borrower brought by …
