This identified non-performing as a major to banking crisis. Albeit many loans were secured with , recovering them proved impossible owing to many factors which militate against realization of mortgage securities.
This work therefore examined these factors that hinder realization of mortgage securities and proffered solutions to them in order to enhance debt recovery.
The work discussed the of good lending; the factors that lenders should reckon with in deciding whether or not to grant a loan.
It also discussed land mortgages with emphasis on statutes that have bearing on land mortgages. Mortgage of personal chattels, ships, companies‟ assets and shares were also discussed.
Incidence of bank failures in different countries was discussed. The work adopted the doctrinal method of research; placing reliance on primary and secondary materials.
The primary materials include legislation while the secondary materials include case law, text books, reports, and internet materials.
Table of Contents
Title Page i
Certification ii
Dedication iii
Acknowledgements iv
Table of Contents v
Table of Cases iv
Table of Statutes xvi
Table of Abbreviations xxi
Abstract xxii
CHAPTER ONE GENERAL INTRODUCTION
- . Background of the Research 1
- . Statement of the Problem 3
- . Objectives of the Study 4
- . Research Questions 5
- . Significance of the Study 5
- . Literature Review 6
- . Research Methodology 14
- . Scope of the Study 15
CHAPTER TWO PRINCIPLES OF GOOD LENDING
- Introduction 16
- Capacity of the Borrower 17
- Capacity to Repay Loan 17
- Legal Capacity 18
- Character 21
- Collateral 22
- Amount of the Advance 23
- Duration of the Advance 24
- Profitability of the Advance 25
- Purpose of the Advance 26
CHAPTER THREE SUBJECT-MATTERS OF MORTGAGES
- Introduction 28
- Definition of Mortgage 28
- Mortgages and Other Securities Compared 29
- Pledge 29
- Lien 30
- Equitable Mortgage 33
- Subject-Matters of Mortgages 35
- Mortgage of Personal Chattels 35
- Mortgage of Ships 36
- Mortgage of Shares 37
- Mortgage of Companies‟ Assets 38
CHAPTER FOUR MORTGAGE OF LAND
- Introduction 39
- Applicable Laws to Mortgage of Land 39
- Common Law 40
- Property and Conveyancing Law 40
- Equity 42
- Land Use Act 44
- Mortgages over land in Rural Areas 45
- Subject Matter of Mortgage under the Land Use Act 46
4.1.4.3 Requirement of Governor‟s Consent 47
- Registration of Titles Act 58
- Land Instrument Registration Law 58
- Stamp Duties Act 59
- CAMA 59
- Illiterates 60
CHAPTER FIVE RIGHTS AND REMEDIES OF PARTIES IN A MORTGAGE TRANSACTION
- Introduction 61
- Rights of the Mortgagee 61
- Enforcement of the Covenant to Repay 62
- Entering into Possession 64
- Appointment of a Receiver 67
- Responsibility of a Receiver 69
- Receiver‟s Obligations 69
- Action for Foreclosure 70
5.1.4.1 Implication of the Land Use Act on the Remedy of Foreclosure 73
- Sale of Mortgaged Property 75
- Mortgagee‟s Obligation in Exercising Power of Sale 77
- Protection of Purchaser 79
5.1.3.3. Injunction against Mortgagee‟s Exercise of Power of Sale 81
- Mortgagee‟s Exercise of Power of Sale through an Auctioneer 83
- Failure of an Auctioneer to Comply with Mandatory Notices of Sale 84
- Rights of the Mortgagor 87
- Right of Ownership 87
- Right to Sell the Mortgaged Property 87
- Legal Right to Redeem 88
- Equitable Right to Redeem 88
- Mortgagor‟s Equity of Redemption 91
- Power to Grant Leases 96
CHAPTER SIX PRUDENT MORTGAGE PRINCIPLES AND BANKING CRISIS
6.0. Introduction 100
- Non-Performing Loans and Banking Crisis in Some Jurisdiction 100
- The Impact of Non-Performing Loans on the Health of Banks 105
- Poor Asset Quality 105
- Capital Inadequacy 106
- Other Triggers of Banking Crisis 107
- Mismanagement 107
- Dealing Losses 107
- Macro-Economic Instability 108
- Changes in Legal and Regulatory Framework 108
- Governments Responses to Banking Crisis in Nigeria 109
- Establishment of the Central Bank of Nigeria 109
- Establishment of Nigeria Deposit Insurance Corporation 109
- Establishment of Asset Management Corporation of Nigeria 110
- Enactment of the Banks and Other Financial Institutions Act 110
- Enactment of the Failed Banks‟ Act 111
CHAPTER SEVEN RECOMMENDATIONS AND CONCLUSION
- Summary of Findings 113
- Recommendations 115
7.2. Conclusion 119
Bibliography 120
Appendices 123
Introduction
Background of Study
Crisis in the Nigerian banking industry has become a common phenomenon. It predates the country‟s independence.
Nigeria began experiencing crisis in its banking industry in late 1940s and early 1950s during which period 25 banks failed.
The country again witnessed another phase of bank failures between 1994 and 2006, during which a total of 49 banks failed. In 1998 alone, 26 banks failed.
Similarly, in the year 2009, Nigeria again had another taste of banking crisis in which 8 banks were affected.
The timely intervention of the Central Bank of Nigeria was able to salvage the condition of the affected banks and saved them from collapsing.
The intervention involved the injection of N620 billion into the affected banks and the sack of management staff of some of the banks.
In the year 2010, a total of 103 micro finance banks also went into liquidation while 83 others had their licences revoked in 2014.
Bibliography
Akujobi, O. R., The Land Use Act, Twenty Five Years After, edited by I.O. Smith, (Lagos: Folar Prints, 2003).
Aluko, O., The Law of Real Property and Procedure, (2nd edn., Ibadan: Bright Star Publishers Nigeria Ltd., 2001).
Burn, E. H., Modern Law of Real Property, (13th edn., London: Butterworths & Co (Publishers) Ltd., 1982).
Campbell, A. and Cartwright P., Banks in Crisis: the Legal Response, (England: Ashgate Publishing Company, 2002).
Cousins, E. F., The Law of Mortgages, (London: Sweet & Maxwell Limited, 2001).
Chianu, E., Law of Securities for Bank Advances (Mortgage of Land), (2nd edn., Benin City:
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