Danie, a farmer who farms on his uncle’s farm, owns one tractor which he
uses every day. Danie wants to borrow R400,000 from Yank Bank in order to buy
some dairy cows. Yank Bank requires security for the loan in
order to ensure that Danie will repay the loan.
Danie only has the tractor to offer as security for the loan, but he
can’t work on the farm without the tractor.

Which ONE of the following
forms of security will be the best
way for Danie to secure his obligations under the loan?

Question

Danie, a farmer who farms on his uncle’s farm, owns one tractor which he
uses every day. Danie wants to borrow R400,000 from Yank Bank in order to buy
some   dairy cows.  Yank Bank requires security for the loan in
order to ensure that Danie will repay the loan. 
Danie only has the tractor to offer as security for the loan, but he
can’t work on the farm without the tractor.

Which  ONE  of the following
forms of security will be   the best
way for Danie to secure his obligations under the loan?

Accepted Answer

a notarial bond

Answer

1                   
 a
mortgage bond

Answer

1                   
 pledge

Answer

a lien

Crowdly

Danie, a farmer who farms on his uncle’s farm, owns one tractor which he uses e...

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