参考答案

正确答案：(1) Concept of the securitySecurity can be viewed as a "comfort" which provides the lending banker with the assurance that if things go wrong with the loan there is another source of recovery available to minimize credit losses.(2)The classification of the securityA. Direct security and collateralDirect security: refers to the borrower's assets obtained by the bank by way of a mortgage charge or lien.Collateral: refers to any security deposited by a third party to secure the indebtedness of the borrower.B. Tangible and intangibleTangible: include land buildings fixed deposits shares and stocks.Intangible: guarantees and indemnities.(3)The types of security and their featuresLand and other propertyMost popular type of security.It can be classified as "legal" or "equitable" mortgage.Life policyIt is an adequate form of security especially against loans made to a sole proprietorship.Stocks and sharesIt is common type of security.To avoid the risk involved loans should not be made against "unquoted" shares.GuaranteesIt is a written undertaking to be responsible for the debt of another party.There are three parties involved: creditor debtor and guarantor.DebenturesIt is a written acknowledgement of indebtedness by a company usually given under its seal and setting out the terms of interest and repayment.DepositsIt is a safe and highly liquid form of security.Its value is readily available and realization is relatively easy.(4)The factors influencing the judgment of the securityValue: the price at the time it is necessary to sell the asset so as to recover the loan.Type:Acceptability: acceptable to the bank as security and be readily available to be transferred to the bank.Realizability: the last step that the bank takes to recover the loan.(5)The criteria for good or suitable securityEasy to value.Easy to transfer tide.Easy to realize.Stable and increasing in value.(6)The advantage of using securityIt provides banks with some form of insurance to safeguard the bank against any loss if the loan turns out to be irrecoverable.(7)The limitation of using securitySecurity is a protection rather than a source of repayment. It should be the last item to be considered in loan approval.
(1) Concept of the securitySecurity can be viewed as a "comfort" which provides the lending banker with the assurance that if things go wrong with the loan, there is another source of recovery available to minimize credit losses.(2)The classification of the securityA. Direct security and collateralDirect security: refers to the borrower's assets obtained by the bank by way of a mortgage, charge or lien.Collateral: refers to any security deposited by a third party to secure the indebtedness of the borrower.B. Tangible and intangibleTangible: include land, buildings, fixed deposits, shares and stocks.Intangible: guarantees and indemnities.(3)The types of security and their featuresLand and other propertyMost popular type of security.It can be classified as "legal" or "equitable" mortgage.Life policyIt is an adequate form. of security, especially against loans made to a sole proprietorship.Stocks and sharesIt is common type of security.To avoid the risk involved, loans should not be made against "unquoted" shares.GuaranteesIt is a written undertaking to be responsible for the debt of another party.There are three parties involved: creditor, debtor and guarantor.DebenturesIt is a written acknowledgement of indebtedness by a company, usually given under its seal and setting out the terms of interest and repayment.DepositsIt is a safe and highly liquid form. of security.Its value is readily available and realization is relatively easy.(4)The factors influencing the judgment of the securityValue: the price at the time it is necessary to sell the asset so as to recover the loan.Type:Acceptability: acceptable to the bank as security, and be readily available to be transferred to the bank.Realizability: the last step that the bank takes to recover the loan.(5)The criteria for good or suitable securityEasy to value.Easy to transfer tide.Easy to realize.Stable and increasing in value.(6)The advantage of using securityIt provides banks with some form. of insurance to safeguard the bank against any loss if the loan turns out to be irrecoverable.(7)The limitation of using securitySecurity is a protection rather than a source of repayment. It should be the last item to be considered in loan approval.