Answer to Question #283993 in Marketing for Loui

Question

Question 2

Henry is 17 years of age and has had an account at your bank since he was 13 years old. He is going to UNZA next month to study Law. He needs K25, 000.00 to spend on various items and special clothing in line with his career path. He is before your Office to seek for an overdraft as his father is willing to guarantee the repayment of the stated overdraft even though he believes his son should “stand on his own feet. “Discuss the legal position in this situation. Would your bank extend this overdraft to Henry? (10 Marks)

Answer 1

Since Henry is a minor and his father is willing to guarantee the payment of the loan, I will therefore consider the following legal position for a bank overdraft.

1. I will evaluate their purpose of overdraft by assessing how they plan to spend.

2. I will check the credit history of the minor's account.

3. I will investigate personal information by checking my credit scores such as criminal records, task returns, assets, financial statements, and personal loan balance statement to a certain eligibility

4. I will demand personal collateral which is a personal property put as a guarantee for the bank overdraft repayment

5. I will check the legibility of the personal guarantee where I may require Henry's father to pledge specific assets such as home or investment accounts for additional overdraft security.

Therefore Henry will not be eligible for bank overdraft since his application did meet the above-mentioned requirements. Hence will decline to approve the bank overdraft.