BLO 3405 Lecture Notes - Lecture 5: Consumer Credit Protection Act Of 1968, Torella Dei Lombardi, Security Interest
31 Jul 2021
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Lending by the banker to the customer is usual subject to a written contract. The rba can make policy statements wrt lending practices however it is rarely used. There are different types of lending practice, and different types of borrower: general principles. Standby letters of credit or performance bonds are discussed in the final lecture, but the basic idea is that the banker promises to some third party that payment will be made under certain circumstances. For example, a foreign purchaser of australian goods who may be issued a performance bond by an australian bank to pay a sum in the case of loss: general principles. Letters of comfort: a letter of comfort is an assurance to a lender that the parent company is aware of the loan. There are 3 types of letters of comfort (p408: although not a guarantee, letters of comfort can have legal effect, general principles.
