CHARGE OF LAND AS A SECURITY IN A SECURED CREDIT TRANSACTION
Ahmad Akun Ibrahim, ESQ
Volume 2 Issue 2
Abstract
Loan transactions have become part of human being. Law and equity has developed concepts to secure monies advanced to the debtor due to rampart default of payment or fulfillment of obligation by the debtor to guarantee creditors of realizing their advanced Loans. This paper focused on the validity of charge of Land as a security in Loan transactions, using the black letter process, the paper realized the advantages of charge agreement for its simplicity in creation and giving the parties a security needed depending on the part of the charge and the chargor based on the covenant therein. At the conclusion stage, it is recommended that where the Loan transaction involves huge amount of money the creditor is advices to go for mortgage agreement than charge which does not create any right over the charged land but only creates evidence of loan. Keywords: Land, Mortgages, Chargee, Security, Chargor
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