Contributed By MMC Africa Law
Where there is a valid security and the borrower defaults in loan repayment, the lender can exercise the statutory power of sale.
Before exercising this power, the lender is required to serve the borrower with a one-month notice stating the nature of the default and what is required to be done by the borrower in order to remedy the default. This is followed by a 40-day notice of sale.
Before exercising the right of sale the lender is required to conduct a valuation of the charged property.
Once appointed, the auctioneer is required to serve the borrower with a 45-day notice within which the borrower may redeem the property by payment of the outstanding amount.
Unless otherwise provided in the charge, charges rank in the order in which they are registered.