Drake requests a business loan from his bank Money Bank. The bank requests certain documents from him
Question:
Drake requests a business loan from his bank “Money Bank”. The bank requests certain documents from him including, his proof of income, identity document and proof of residence. The documents show that Drake is currently obligated to pay off his vehicle, home loan, credit card and medical bills from a previous surgery. Money Bank proceeds to grant the business loan. Consider the above case and answer the following questions. Make reference to relevant legislation in your answers.
1 Examine and discuss whether or not Money Bank has entered into a reckless credit agreement.
2 Assume that a few months later Drake discovers that he does not have the means to meet all his outstanding debts. Advise Drake how he can be assisted to meet his debt commitments.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill