The decision in Butler v Vavladelis highlights the importance of - TopicsExpress



          

The decision in Butler v Vavladelis highlights the importance of implementing and adhering to prudent lending practices when it comes to asset based lending. It is not sufficient to simply ignore the particular circumstances of the borrower and rely on the fact that the loan is adequately secured. A diligent lender must make enquiries of every borrower, including their ability to repay the loan, regardless of the amount of the security. A failure to do so may be found to constitute unconscionable conduct entitling the borrower to set aside the mortgage instrument.
Posted on: Sat, 03 Aug 2013 01:12:21 +0000

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