ACTION FOR FORECLOSURE

An action for foreclosure is a judicial procedure by which the mortgagee acquires the mortgaged property for himself free from the mortgagor's equity of redemption. It is a more effective remedy available to the mortgagee in urgent need of his capital which he cannot realise from the…

SECURED AND UNSECURED CREDITS

Secured credit generally refers to credit that requires you to pledge something of value in order to secure a loan. In banking terms, it is called collateral . By contrast , an unsecured loan or line of credit doesn't require any collateral . UNSECURED CREDITS These are…

CLASSIFICATION OF SECURITY

Securities are classified into real and personal. Real security gives the creditor certain rights over property which has been appropriated to meet the debt. This takes the form of a right in rem over specific property to the satisfaction of a particular debt so that the debt…

CORPORATE LONG TERM FINANCE: DEBT AND EQUITY

Securities issued by corporations may be classified roughly as equity securities and debt securities. At its crudest level, a debt represents something that must be repaid; it is the result of borrowing of money. When corporations borrow, they promise to make regularly scheduled interest payments and to…

FIXED AND VARIABLE COST

VARIABLE COST: By definition , variable cost change as the quantity of output changes and they are zero when production is zero. For example, direct labour cost and raw material costs are usually considered variable. This makes sense because if we shut down operations tomorrow, there will…

ROYALTY

Royalty is the remunerations payable to a person in respect of the use of an asset , whether hired or purchased from such person, calculated by reference to and varying with quantities produced or sold as a result of the use of such assets. The expression used…

CASH OUTFLOWS

These comes in four categories: Payments of accounts payable: These are payments for goods or services rendered by suppliers , such as raw materials and services. Generally, these payments will be made sometime after purchases.Wages, taxes, and other expenses: This category includes all other regular costs of…

Auditing

Auditing is defined as a process, carried out by an appointed qualified person or body, whereby the records and financial statements of an entity are subjected to independent examination in such detail as will enable the auditor form an opinion as to the truth and fairness of…

DIVIDENDS

One distinctive feature of corporations is that they have shares on which they are authorized by law to pay dividends to their shareholders. Dividends paid to shareholders represents a return on the capital directly or indirectly contributed to the corporation by the shareholders. The payment of dividends…

INSURABLE INTEREST

Insurable interest, though a legal concept is not synonymous with legal interest. The interest recognized at law as insurable interest may be defined as the insured's pecuniary interest in the subject matter of the insurance. Thus, A buys a Peugeot 505 for one million naira. That is…

Doctrine of Subrogation

The judicial meaning of Subrogation is substitution. It is the substitution of one person for another, so that the rights and duties as attached to the original person attach to the substituted person. Under the doctrine, the insurer is substituted for the insured after fulfilling some contractual…

ARBITRATION AND AWARDS

An arbitration is the reference of a dispute or difference between not less than two parties for determination after hearing both sides in a judicial manner, by a person or persons other than a court of competent jurisdiction. A person or persons to whom a reference to…