Types of Bonds

TYPES OF MORTGAGE BONDS
1.    MORTGAGE BOND: is registered over land as security for the repayment of the loan. It is prepared and lodged by a conveyancer.
2.    SUERTY MORTGAGE BOND: It is an additional security passed in favour of the mortgagee, it involves a third party.
3.    NOTORIAL BONDS: Theses are bonds, which do not involve immovable assets. We have two types of these bonds  i.e
4.    NOTORIAL GENERAL COVERING BOND: It is a bond attested by as notary public hypothecating movable property generally
5.    NOTORIAL SPECIAL OR SPECIFIC COVERING BOND: It specifies the actual assets, which are being attached. Disadvantage of this bond is that you cannot temper with the assets without notifying the mortgagee.
6.    NOTE OF HAND: An advance made to a mortgagor and does not exceed 5yrs. Normally given by the AGRIBANK and SEDCO.
7.    CESSION OF BOOK DEBTS: This is whereby you cede your books of debts to a financial institution so that you will be given money and payment of the debt will be made to a financial institution. Advantage is that you able to get money quickly to finance your project the company is relived of following up on debts since everything will have been surrendered to the financial institution also bookkeeping costs are reduced since everything will be done by the financial institution

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