Introduction The “6 C’s of credit” or “6C ’s of banking" are a common reference to the major elements of a banker’s analysis when considering a request for a loan. Is the Borrower Creditworthy? The question that must be dealt with before any other is whether or not the customer can service the loan –that is‚ pay out the credit when due‚ with a comfortable margin for error. 6 C’s of Credit 1. Character 2. Capacity 3. Cash 4. Collateral 5. Conditions 6. Control Character The first
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Case Study Chase’s Strategy for Syndicating the Hong Kong Disneyland Loan Analysts: Bian Min‚ Luo Min‚ Wang Hongyu‚ Zhu Haidong Syndicated loan‚ with two or more bank lenders and a single set of legal documents‚ have gained tremendous popularity among corporations to finance their projects. This report aimed at evaluating the process by which Chase Manhattan Bank (“Chase”) syndicated the HK$3.3 billion Hong Kong Disneyland financing. To begin with‚ a detailed analysis of the first-round
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Case 12-9 Rough Waters Ahead Smooth Sailing is a private company that operates one cruise ship. Smooth Sailing’s purchase of the cruise ship was financed with nonrecourse debt. (Nonrecourse debt is a loan that is secured by a pledge of collateral‚ in this case the cruise ship‚ but for which the borrower is not personally liable. If the borrower defaults‚ the lender can seize the collateral‚ but the lender’s recovery is limited to the collateral.) The cruise ship has its own identifiable cash flows
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ways does top management control the operation of the law? For this case‚ two sections of Mr. Somersby‘s division were concerned. First‚ Individual Loan Section which was responsible for the legal processing of loans made to individuals and secured by mortgage on real property. 1. Operation is being controlled by evaluating the work or output of individual examiners. 2. Time and motion study. Since the job is repetitive they believed that the examiners would perform better or become
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7 main functions of a Commercial bank K. Upadhyaya The main functions of commercial banks are accepting deposits from the public and advancing them loans. However‚ besides these functions there are many other functions which these banks perform. All these functions can be divided under the following heads: 1. Accepting deposits 2. Giving loans 3. Overdraft 4. Discounting of Bills of Exchange 5. Investment of Funds 6. Agency Functions 7. Miscellaneous Functions 1. Accepting Deposits: The
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and the loan was secured by documents and guarantees. The documents evidencing the loans showed that the hotel whose shares were being purchased by a company had given financial assistance to that company. This act contravened Section 67 of the Companies Act 1965. The Court held that: The transactions were tainted with illegalit Chung Khiaw Bank Ltd. v. Hotel Rasa Sayang Sdn. Bhd. & Anor[1990] 1 MLJ 356. The appellants extended loans to the respondents and the loan was secured by documents and
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Agency Conflict 2: Stockholders versus Creditors Conflict of interest can also arise between stockholders and creditors. Stockholders may take decisions that increase their return on debt which eventually leads to decrease in the value of the debt. Creditors also have a claim on the earnings and assets of the firm for the payment of interest and principal and in case of bankruptcy. Creditors are providers of long term debt of capital. They lend funds at rates that are based on; 1. The risk of
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Being Secured In this descriptive category patient right practice as being secured‚ the patients conceived patient right as a way of real patient provider relation to be protected from any loss of private information and potential harms. Patients conceived being secured as privacy. Patients may not want to be seen in a place that might expose them during consultation or physical examination. They are expected to protect their private from other health care providers‚ patients or other people during
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involves trade-offs between risk and profitability. This chapter also reviews sources of secured and unsecured short-term financing‚ including the role of international loans. Spontaneous sources‚ such as accounts payable and accruals‚ are differentiated from negotiated bank sources‚ such as lines of credit. The cash discount offered on accounts payable and the cost of forgoing the discount are described. Secured sources include bank and commercial finance company loans backed by collateral such as
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Should Druthers Forming Limited be given the loan? Background Druthers Forming Limited was incorporated in 1987 by Mr. Garrett‚ Norm Sheppard and one other investor with the primary objective to served the need of Sheppard homes. But in the late of 1980’s‚ Jack Sheppard observed the demand of foundation far outstripped supply in the region and long waits for foundation construction had become standard. ori Norm Sheppard have requested on July 30‚ 2007 an amount of $350‚000 loan from Mr. Brad Mac
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