Ganafa v DFCU Bank
Ganafa v DFCU Bank (Civil Suit No. 465 of 2014) [2015] UGCommC 182 (7 December 2015)
The court found that the Plaintiff was a mortgagor who pledged his property as security for the loan facility advanced to the Borrowers. There was no evidence of a separate guarantee agreement, and the mortgage deed expressly defined the Plaintiff as a mortgagor. The alleged subsequent loan facility was not proven; the transfer of indebtedness between accounts was an internal administrative mechanism and did not constitute a new loan or discharge the mortgage. The Plaintiff was not personally liable as a guarantor, but the property remained liable as security for the outstanding debt. The cou…
Source excerpt
- Mortgage Liability
- Guarantee Vs Mortgagor
- Contract Variation
- Security Enforcement
- Loan Default
- Power Of Attorney