LAW20045 FINANCE LAW - RESEARCH ASSIGNMENT

Part A – Problem Solving

(a) Should Ted and Y-Bank approve Betty’s loan application based on the information above? Assuming they do, will this decision be considered “irresponsible” lending according to relevant statute and case law? What potential legal remedies would be available to Betty if indeed this decision were considered to be “irresponsible” lending? Is there anything you would recommend to Betty to improve her chances of a successful
loan application?

(b) Advise Betty of the potential legal implications of what the bank manager has suggested and discussed. She is worried that she will not have the same legal rights as if she had borrowed from a bank. Should she borrow money from this private lender? Provide reasons for your answer.