#bank loan does not confer any right-title and interest

[ecopackindia]

Bengaluru-2022 flooding and the problem of home loans or bank loans - the banks, will demand and recover-even if the property is demolished or gone!!!!!!

Bengaluru-2022 flooding and the problem of home loans or bank loans – the banks, will demand and recover-even if the property is demolished or gone!!!!!!

The middle-class buyers of properties, whose, properties, are said to have been in the encroachment zone or on raja kaluve, face another serious issue. Even, if the property is demolished or partially demolished or dispossessed or evicted from the property, the banks, will not waive off the loans, nor will reduce the interest, nor will provide any assistance. They will recover their…

[freelanews-blog]

ARTFUL DODGER: OKOROJI'S WEEKLY BREAKFAST SERVING OF SELF-HURTING RHETORICS

By Victor Ojelabi

For the umpteenth time, Chief Tony Okoroji uses his weekly SATURDAY BREAKFAST with TONY OKOROJI on his Facebook page to affirm his innocence, promote his pedigree, sell his altruism, attack his opponents and work up a storm of emotions without addressing the real issues. Saturday, May 11, 2019's "THE POSSIBILITY OF THE IMPOSSIBLE" yet again, rehashed often published statements with a concluding paragraph that appears to reference the #AuditCOSON position that was one of the key outcomes of the Music Publishers Association of Nigeria (MPAN) Town Hall Meeting of May 10, 2019. Okoroji's rancid rigmarole would impress only those who badly want to be impressed simply because the one true route to validating his aggressively professed innocence is the route his so vehemently seeks to dodge or discredit - the full forensic audit of the account and operations of COSON under his tenure as chairman. While his supporters read and cheer, these in my humble opinion, are the questions discerning minds ask: OKOROJI'S QUOTE: "Visiting an Oba, an Emir, a Minister or a Governor in our continuous outreach to expand the frontiers of the understanding of intellectual property in our country, is probably one percent of the work we do. That is however the part of the work that most times attracts envy. REACTION: Are we supposed to believe that busy COSON directors like Obi Asika, SK Sensation, Efe Omorogbe and Audu Maikori were suddenly so idle and petty that they grew envious of Okoroji because of royal visits?   OKOROJI'S QUOTE: "Anyone who has managed a band of a few musicians, will understand that bringing together thousands of creative people, managing their effervescent temperaments and molding them into a force for progress is not beans." REACTION: Doesn't this imply that Okoroji single-handedly "brought together and moulded thousands of creative people into a force"?   Does this claim correlate with the widely known fact that COSON was founded and promoted by the Nigerian Music Industry Coalition made up of several leading industry associations like AM.B-Pro, PMAN, NARI, PMRS etc? Have the likes of Laolu Akins, Edi Lawani, Efe Omorogbe, Toju Ejueyitchie, Ebenezer Obey, Onyeka Onwenu, Audu Maikori, Sunny Neji, Dele Abiodun, Goddy Tabansi, Charlimo, Joel Ajayi, Joey Ukpong, Tony Anifite and many more not been repeatedly celebrated for their efforts in birthing COSON? OKOROJI'S QUOTE: "I have superintended over the building of an outstanding Nigerian institution called COSON which many said could never see the light of day. When the COSON House was commissioned almost two years ago, a lot of people were surprised that there was not one Naira of government money in the magnificent building, no donor dollar from anywhere, no bank loan and no debt of any type." REACTION: The process of onboarding the contractor has been questioned.   The directors have alleged that the figures paid to the said contractor were neither negotiated nor approved by the board.   They have also alleged that an attempt to save COSON some money by pressing for a discount on the final instalment of the said payment was resisted by Okoroji and indeed, led to the illegal disollution of the finance committee by Okoroji.   Is it more important to bask in the euphoria of the commissioning of the "magnificent COSON House without government money or donor dollar than insist on proper procurement process for a public institution? OKOROJI'S QUOTE: "For eight years, not one of the highly trained staff of COSON received his or her salary one day late. Not until recently, when some meddlesome interlopers went to court behind our backs to shut down the bank accounts of COSON." REACTION: The order to freeze the COSON accounts made provision for the payment of staff emoluments and the lawyers of the plaintiffs reportedly made attempts to ensure those payments were made.   Could COSON have ignored the approach to create the false impression that the action was carried out to deny the staff of their entitlement? OKOROJI'S QUOTE: "My dedication to the copyright cause has never been because of a title or because of personal wealth. My official car for much of 2018 was one rickety 20-year old Toyota Camry and later on, one 16-year old Honda Pilot. I do not live in a house provided by COSON. No member of my family goes to a hospital provided by COSON. I do not go on a vacation on the bill of COSON. I have written in Saturday Breakfast before that I verily believe that the true worth of a man is not in what he takes but in what he gives. Pray, how many bags of Naira will I be buried with?" REACTION: The press statement from the press conference of January 16, 2018 stated that Okoroji illegally collected almost N10,000,000.00 (Ten million naira) as personal commission from a single royalty settlement in 2017.   Some directors have also alleged that no individual or corporate member of COSON has collected anything near what Okoroji/TOPS has collected from the society in last three years prior to the beginning of the crisis in December 2017. Not the performer, author or writer of the biggest hits, not the label or publishing company with the biggest repertoire.   Okoroji claims he's a "poor" selfless target of the envious interlopers. The directors claim he is bleeding the collecting society. Shouldn't it be Okoroji canvassing #AuditCOSON to clear his name?   OKOROJI'S QUOTE: "In the last 12 months, I have been dragged to the Nigeria Police, the EFCC and visited by SARS. Not long ago, it was all over the media that the Copyright Commission has filed criminal charges against me and some of my colleagues at COSON for working for the good of our country! They did not file the charges because we did anything wrong but because we did everything right." REACTION: Okoroji and colleagues were charged with criminally operating a CMO with a suspended licence, not for "working for the good of our country". OKOROJI'S QUOTE: "To think that I was one of the people who wrote the law setting up the Nigerian Copyright Commission. Typical Nigerians, they badly want to hijack COSON and bleed it dry."   REACTION: Does this place Okoroji above the law or COSON beyond the regulation of the commission? OKOROJI'S QUOTE: "Recently, they began this loud campaign for the ‘independent’ audit of the COSON accounts. The intent is to create the impression that Okoroji’s hands are not clean. “He is hiding something somewhere”. The persons who started this campaign know the truth. The truth is that no organization in the history of the Nigerian creative industry has, year after year, been meticulously audited like COSON. Not the NCC. Not PMAN. Not NARI. Not REPRONIG. Not AVRS. Not AMB – PRO. Not AGN!" REACTION: If hundreds of prominent members and even directors have been calling for the audit for more than a year, isn't better to allow the "independent" audit shame those who claim that "Okoroji's hands are not clean"?   How is a Facebook post advancing a lame argument that COSON is more meticulously audited than NCC, AGN, PMAN or NARI stronger proof of innocence than the independent audit? OKOROJI'S QUOTE: "Each of the thousands of COSON members, including those making the noise, have copies of the COSON audited accounts which have been ratified by COSON members every single year, as required by law." REACTION: Do these copies of the COSON audited accounts show details that exonerate Okoroji/TOPS of claims of illegally collecting tens of millions from COSON over the years?   If not, then a full forensic audit is necessary to validate their claims or exonerate the accused. OKOROJI'S QUOTE: "I swore to defend the interest of the members of COSON as long as they want me to." REACTION: "This is interesting! Are the directors and hitmakers - including Sound Sultan, Falz, EME, Skales, Mavin, Square Records, Vector, Chocolate City, 2Baba, Timi Dakolo, 9ice, Brymo, Sunny Neji, Ruggedman, Tunde & Wunmi Obe, Universal, Green Light Publishing etc - whose works mainly earn licensing income for COSON not MEMBERS in Okoroji's view? Haven't they, some after more than a year of questions and petitions, stated it clearly enough that Okoroji should step aside for a while, allow the audit prove his innocence before resuming his self appointed Voltron role? Or is it like, those who do not agree with him are automatically non-members, irrelevant members or enemies of COSON? Someone should tell Chief Tony Okoroji that thesw Maradona-esque manoeuvres are clearly more indicting that the rantings of his envious enemies. He should be advised to do the needful, prove his innocence and shame his detractors once and for all. #AuditCOSON. Read the full article

[lavernecapitalau]

3 Things You Should Know Before Working with Mortgage Broker

You’ve narrowed down the hunt to find your dream house, and now you’re on the research for the best mortgage to put those keys in your hand. One way to do it: Work with a mortgage broker who can shepherd you through the complicated lending procedure from start to end.  

You’ve probably heard the term “mortgage broker” from your real estate agent or friends who’ve bought a house. But what precisely is a mortgage broker and what does one do that’s dissimilar from, say, a loan officer at a bank?  

1)      What Is A Mortgage Broker?

A mortgage broker acts as a mediator between you and potential lenders. The broker’s job is to work on your behalf with numerous banks to search the best mortgage lenders who best fit your requirements with the lowest rates. Mortgage brokers have a well-developed steady of lenders they work with, making your life easier.  

New mortgage brokers are licensed and regulated financial experts. They do all the legwork — from gathering documents from you to pulling your credit history and verifying your income and employment — and use the data to apply for loans on your behalf with different lenders in a short time frame.  

Mortgage brokers are licensed, financial experts. They collect papers, pull your credit history, verify earnings and apply for loans on your behalf.    

Once you resolve on a loan and a lender that works best for you, your mortgage broker will work together with the bank’s underwriting department, the closing agent (usually the title company), and your real estate broker to keep the transaction running smoothly through closing day.    

If your business involves movement and machinery, it is critical that you get the right Mortgage financial solutions for vehicle and equipment finance which works for you in the long run and you can get it at any time from dealer group services.

2)      How Does a Mortgage Broker Get Paid

Like almost all the sales professionals, mortgage brokers charge a commission for their services. They typically charge a “loan origination fee,” which can be about 1% of the loan amount and is paid by the borrower at closing.

Sometimes, though, mortgage brokers confer no-cost loans so you don’t have to shell out extra money up front; the broker will instead be paid by the lender after the loan closes. However, choosing a no-cost loan to decrease your out-of-pocket expenditures means you’ll pay a higher interest rate, which costs more over time.  

3)      Advantages of Using A Mortgage Broker

For beginners, a mortgage broker acts as your personal loan concierge and does all the work for you. The broker applies for loans with dissimilar lenders on behalf of you, finds the lowest mortgage rates, negotiates terms and makes the approval magic happen.  

Most mortgage brokers have relationships with several local, regional and even national lenders, and they can tap those links to get some loan fees waived for you. Our Australian Mortgage Brokers will give you ease of access and one-on-one consideration you likely won’t find when working directly with a loan officer at a large bank.

Another perk: Some banks and lenders work completely with brokers, and that, positions you to get qualified for positive loan products if your mortgage broker has a good relationship with those lenders.

You’ll also save time by using a mortgage broker; it can take hours to apply for loans, and then there are the hassles of communication involved in underwriting the loan and ensuring the operation stays on track. A mortgage broker can save you from managing all those discouraging details.  

To choose the correct mortgage broker, it’s wise to interview few people to find out what services they offer, how much experience they have, how much professionalism they carry and how they can make things easier. Don’t forget to check your state’s professional licensing authority to ensure they have current Joint Mortgage Broker License in good standing.

[traciedemars]

Fees & Costs of Buying a Home Upcoming Free (& non-promotional) Home Buyer Classes:   ...we also have home seller classes available.  Link on left on website page Saturday, January 26th, from 11am-2pm (ish) ​       Vancouver YMCA, conference room       11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave). Saturday, February 2nd, from 9am-12pm (ish)       Marshall Community Center, conference room       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College) Saturday, February 16th, from 12pm-3pm (ish) ​       Vancouver YMCA, conference room       11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                        Remember...with reservation...we will throw in lunch, or dinner!  :-D ~~~~~~~~~ Happy 2019~  Now that we are 2 weeks into the new year we can start to get a 'feel' for what this year is going to bring us..right?  ....or not...  It's definitely been a mild winter, so I guess we know that, right?  Let's be honest though....there's lots more winter to come, so it could change, and there's still plenty of this year to go as well.    Last fall was pretty slow in the real estate world, and we saw plenty of price reductions.  This winter was also pretty slow as well....  have we reached the plateau?  Have we reached that 'magic' place where the crazy sellers market balances out? This spring will tell the tale...  Spring is typically the 'busy time' of the year as people get their income tax refunds back.  Tax refunds are used a lot for down payment & closing costs by buyers, so that is when the market gets crazy.  People who are selling their home, now that they have a buyer, go out and look for a new home for themselves.  Spring is crazy...  this year though?  Well, first we have to see if people will get refunds, and then...  well, the good news is that we are seeing a lot of new homes on the market. I have 3 that recently came on the market, and 2 more hitting by the end of the month.  I have spoken with a lot of my agent friends and they're also getting a bunch of calls of people wanting to sell this spring.  So, now we wait to see what will happen with the tax refunds and, of course, interest rates. Interest rates follow the market...market goes down, and so does interest rates. Market goes up, and so does interest rates.  I certainly hoping that the market has reached that seller/buyer balance.  We saw that nice balance in 2014 & 2015.  Real estate typically runs on a 10 year cycle of highs and lows....with a couple of years balance in the middle. Don't forget though that the only things in life that are consistent are death and taxes, so my crystal ball is not to be trusted.     While showing homes, we go over lots of 'little' things that otherwise people don't think about.  Some of these items are the 'hidden' costs of buying a home....those things that you weren't planning on, but probably should be.    Not too long ago, I was on one of the facebook swap/free/sale sites, and I was reading how some people were upset with the home buying process and the 'hidden' fees they weren't told about.  It is true that there are a LOT of fees and other expenses involved with buying a home.  The point of these blogs, and of course, the home buyer classes is to give folks this information.  There shouldn't be anything 'hidden' about the home buying process.  As you know, I am a big fan of not sugarcoating anything....I believe that an ugly truth is better than a pretty lie every day of the week.  You might not always like what I have to say (and that is ok), but I am not going to hold anything back from you on the off chance you might not ask me to help you buy, or sell, your home.  Personally I don't just want to hear about the 'good' things about a loan, or process....I want to hear it all...the good, the bad, and the ugly, so that I can make the best decision for me and my family based on the pros and the cons....not just the good.  So....yes, I am not going to just agree with what you read on the internet, or saw on HGTV, or heard from your direct and personal circle....I am going to give you the pros and cons because this is YOUR home buying (or selling) adventure, and YOU need to make the decisions.  My job is to help you find, and have, all the information I can get you so that you can make those choices based on a full picture....not just half of one.     That all being said, let's talk about the fees you can expect and some ones you might not.  I am not including down payment, or closing costs as part of this.  That will be an email in the upcoming week(s).  These are mainly fees associated with buying a home.  If you are thinking about selling a home, or know someone who is, there are some fees you need to be aware of as well.  I will post that on my facebook page at:  Tracie DeMars Real Estate, or you can contact me.  I am, as always, happy to help! So what fees can you  expect?  There are three fees that will be needed upfront.   Earnest Money....earnest money is typically about $1000- $3000, but the more expensive the home means the more earnest money you will need.   Some banks (& builders) can request 1%-3% of the purchase price for earnest money.  With a bank owned property the bank will want a cashiers check.  With a regular sale, a personal check is fine.  The earnest money is deliverable upon acceptance of the offer, and not when the offer is written.  The earnest money is always made out to the title company and is refundable based upon the 4 legal reasons to back out. Inspection...the inspection is ordered after the offer is accepted.  Remember that the inspection cost is approximately $400- $500, and is non-refundable. You, as the buyer, will hire the inspector and they work for you.  You have 10 calendar days to have the inspection done, and respond to the seller.  Don't wait until the last minute!  Both you, as the buyer, and your buyers agent should be at the home inspection.  A typical inspection is about 2-3 hours long.  Make sure the fee includes the dry rot and pest report....  We talked about home inspections a couple of weeks/months ago, but let me know if you need it again....or... hit up the Facebook page:  Tracie DeMars Real Estate.  It should be there.    Appraisal...the appraisal is ordered by the lender, and the lender will put in the order for the appraisal.  An appraiser comes out to the home to verify the homes value for the bank.  The bank will only lend the dollar amount that the appraiser says the home is worth.  An average appraisal costs about $600 -/+ dollars, and is paid for by the buyer.  This is another non-refundable fee.  Neither you, nor your agent, will be present at the appraisal.  With the new laws that took effect a couple years ago, neither agent, nor anyone involved in the sale are supposed to have contact with the appraiser for fear we might 'taint' the appraisal, or affect the numbers.   If you are buying a home with a well then there may an additional fee for the well testing.  You don't have to do that, but as a real estate agent, I would definitely advise you to do it.  Some other inspections that a buyer can have done (at their cost) are a sewer scope & a radon test.  A sewer scope is where they send a camera down the toilet to make sure the sewer lines are open, and a radon test is a company checks for radon levels in the home.  This is always a good idea if you are considering a home with a basement, daylight basement, or a split level home.  The radon test can take 3-5 days.  Again, these inspections are at a buyers expense. These are the only fees a buyer should see before closing.  Being told another fee?  Call, text, or email me... Other fees? Changing out locks...I always advise my clients to change out the locks of their new homes.  Why?  Well, even if the sellers give you all the keys they have...there is not guarantee that there isn't more keys running around somewhere.  I used to change out my house locks every couple of years because my kids were always losing keys.  Finally....last year... I went and purchased the the house locks that have the key pad.  It is awesome!!  I don't worry about lost keys anymore.  Every family member has a code, and what is the best is that I can add and delete codes as needed.  So...go away for a couple of days, and have a house sitter?  Give them a code,and when you get back you simply delete the code. I tell you....worth it!   Mailbox key...yes, legally you are not supposed to copy the mailbox key, but a lot of people do.  Mail is not something you want to mess with.  Take your HUD form down to the post office, and have them re-key the box, and get a new key.  Cost is about $100, but for peace of mind...that isn't much.  When you are changing out locks, talk with the locksmith... she/he may be able to help with this as well.   Paint...you will probably want to paint some, or all, the rooms of your new home.  Each gallon of paint runs about $25.  Paint is the easiest thing you can do to make the home 'yours', and it's fun!  Paint can change the entire feel of a room, or home.  Personally, I am a fan of semi-gloss.  I like the shine to it, and most importantly, it cleans up easy....with kids and big dogs, this is my go-to. Minor repairs...during the home inspection the inspector will probably point out repairs that the home may need.  Some of these repairs may be cosmetic repairs that will be part of your 'honey-do list'  with your new home.  Remember that, at the home inspection, we are looking for any repairs that will affect the safety of the home, or occupants...or anything that may need a contractor to repair.  The 'big' areas that we usually see repairs for are roofs, attic spaces, crawlspaces, and siding.  These are the places that usually get called out during the repair process for a licensed contractor to come in  Remember that home inspectors are licensed for home inspections.  It is during this period that we will request a second opinion by a licensed contractor...who can give a better, more thorough inspection/repair for the item that the inspector called out.  All homes have some repairs that will need to be done by the (new) homeowner....it is part of being a homeowner.  Don't forget that the worst thing a homeowner can do is to defer maintenance.  If you need help with that, give me a call or email... I always have a 'guy' that you can call for help.  Anytime you need work done around the home that you can't do, give me a holler...I know people.   I tease, but it is true.  I know excellent contractors that will usually give you a better deal because I refer them out.  I refer them out because they do a good job...and give better deals.  Just like in Real Estate... referrals are the name of the game.  :-) Lawn supplies...did you come from an apartment?  Well, most likely now you have a yard.  You will need a lawnmower to start with.  There will be other lawn equipment that will follow...weed eaters, trimmers, wheel barrels, shovels, and a myriad other things that come with having a yard.   Appliances...don't forget that washer, dryer, and fridges don't come with the home.  If you don't already have these appliances then you may also be purchasing a washer, dryer, and/or a fridge. Just please, please, please wait until AFTER you get keys for the home before you go purchase these things. Curtains/Blinds...if your new home doesn't already have some then this may be on your 'to buy' list.  Sometimes even if your home does have some, you may want new ones.  Honestly, I have had very good luck with curtains at places like Target, or Fred Meyer, or even Wal-Mart.  I think I've gotten all my curtains from Target.  They have blinds as well. House Cleaner/Carpet Cleaner...when a home is vacant you know exactly what you're going to be walking into when your buyers agent (hopefully me LOL) gives you keys, but... when the home is owner occupied, you don't.  Yes, you can and will do a walk thru of the home before closing, but it will still be occupied.  In many cases, when the home is owner occupied the (soon to be) previous owner doesn't vacate the property until day of closing, or sometimes even a couple of days after closing.  With cases like this, you really don't know what condition the home will be upon closing.  We have to have faith that the (soon to be) previous owner will leave the home in a clean condition, but sometimes...well, sometimes, they don't.  Also, one persons idea of clean is not another persons idea of 'clean'.  :-)  Many times, whether the home is vacant or owner occupied, a buyer will book a professional carpet cleaning, or house cleaning after closing....simply for peace of mind.   Insurance...wait..you already have insurance, don't you?  Well...yes, you have mortgage insurance, title insurance, and homeowners insurance, but what about earthquake insurance?  You don't...  When I purchased my home my homeowners insurance included earthquake insurance.  About 10 years ago though we received a letter that no longer would homeowners insurance include earthquake insurance....why?  Because we live in the #1 high danger area for earthquakes.  Because of that earthquake insurance must now be purchased separately.  So, AFTER you buy your home, call your insurance company and add on earthquake insurance.  Cost isn't too much, but it is important....just in case.   Toilet Seats  Yeah, I know you probably didn't think of that, but really....if it were me, I would change out the toilet seats when you buy your new home.  Why? Well, since now you are thinking about it....I'm sure you can see why.  LOL  Toilet seats are not expensive, and really...having new seats just makes you feel better!  :-D     As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one.  Real Estate is not really about houses, it is about relationships.  Your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.   If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help! Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers.   .   ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... Information is power,  and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would love to be able to help you.  If you have any questions, or comments please get a hold of me anytime.  You can call, text, email, or even facebook me.  Please remember that while I mean these emails/blogs to be helpful, and educational, I am still hoping that you will call, or email me as I would be honored to help you with your home buying, or home selling adventure.   Upcoming Topics: Delayed Possession... What is this & what does it mean to you Interest Rates (information from Chris Berg,Cardinal Financial) What do I need to buy a home, Hiring a Realtor...questions to ask, What if I don't have a Down Payment? .....  &....What does an Agent do for me? Debt to Income Ratios....What is this? Last Week:  Winter Time & Buying (or not) Buying a Home Have a great day, and I will talk to you soon,   ;-D   Tracie DeMars   Real Estate broker   Re/Max - Van Mall   360/ 903-3504 cell   360/ 882-3600 fax   www.traciedemars.com   traciedemars@aol.com       “Interested in free and non promotional home education classes?  Go to www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.” "Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."       - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

[ky-robinson-blog]

Op Ed: Do they offer Future intended for Banking in a very Cryptocurrency-Dominated Earth?

What is the way forward for banking, core banking plus financial intermediation in a entire world in which cryptocurrency is predominant? Let’s predict a bit, along with the proviso of which no one can absolutely anticipate the best way these areas will grow.

We can uncover hints during the speech by way of IMF travel Christine Lagarde at a Loan company of He uk conference around September 2017. She lowered some text that possible sent several chills all the way down a few spines in the crowd. She revealed that cryptocurrency is not a new passing trendy but an absolute innovation inside money. Truly the only remaining tiger traps to extensive adoption are usually technical, repairable and likely for being overcome because sector occurs. This, this girl argued, provides profound significances for the future of monetary intermediation and also central banks.

“In the future, ” she mentioned, “we may well keep marginal balances to get payment providers on electrical wallets. Tenacious balances may perhaps be kept throughout mutual capital, or dedicated to peer-to-peer credit platforms through an edge with big facts and man made intelligence pertaining to automatic credit rating scoring! Quite a few would believe this leaves a question symbol on the fragmentary; sectional banking style we know right now, if there are generally fewer loan company deposits along with money streams into the economic system through completely new channels. ”

She went on to touch the point, while it relates straight away to the Bank connected with England as well as Federal Pre-book.

“How could monetary insurance policy be occured this setting? Today’s banks typically have an affect on asset selling prices through key dealers, or perhaps big finance institutions, to which they furnish liquidity during fixed price tags - supposed open-market treatments. But if all these banks could become significantly less relevant inside the new economical world, in addition to demand for key bank costs were to fade, could personal policy gear box remain like effective? ”

She decide to put a question level after that past sentence, nevertheless she should have made typically the statement: Money policy can't be effective currently. In fact , it is actually worse. Look for a not make any difference at all.

It has an astonishing concern. For more than a hundred years, academics, government bodies, captains with finance plus high-level federal officials have been working to find the fantastic monetary insurance plan to become stable the macroeconomy, provide ease of purchase and sale for advancement without monetary inflation and if not become pga masters of global financial planning.

Nonetheless this full machinery is definitely premised for two necessary conditions. Primary, the government probably the monopoly on dollars. It has performed this exceeding a century. Federal prints the funds, controls their supply, imposes legal tender and also regulates with the enforcement regarding contracts denominated in unofficial currency. Plus second, a lot of this income has to be saved in some way from the banking process. If you take away from both of those people, the cause of middle banking provides a serious problem acting on any method of monetary considering at all.

Which can be indeed quite a different universe. And it is virtually no wonder which the ruling elegance is concerned.

Now, banks just like JPMorgan along with Goldman Sachs are trying blockchain technological innovation and cryptoassets. And Lagarde’s own record might be found to portend the issuance of a innovative global cryptocurrency to replace often the Special Illustrating Right. Typically the core dilemma of these large-scale attempts for you to reproduce the strength of the spread ledger is it might be weak hands, too late. Often the model of a different world of banks and loans and credit history is already discovering itself.

Could Banks Are available? How can be conventional bank affected by cryptocurrency? Lagarde gives you that it improves questions related to fractional-reserve consumer banking, the train of keeping reduced deposits existing than is often immediately settled to users at any on one occasion. The perform has been more successful for hundreds of years, but yet it can produce unwarranted growth of consumer credit and power system-wide insecurity.

Consider the story of business banking. What was the aim of the bank? We have seen traditionally some primary characteristics that bankers have furnished since the traditional world.

The earliest has been to produce safe storeroom for money per se. This is the storage function. It is very important and truly worth paying for. Everyone needs a safe spot for a store their funds.

The second is the exact loan performance. The more highly regarded the storage function turns into, the more the lending company is in the job to leveraging its soprattutto holdings to its credit-granting performs. This is the starting point of fractional-reserve banking. The lending company cannot give all depositors on require. Instead, them relies on it has the financial soundness and a pace of go back for depositors who charge the bank with all the responsibility involving maintaining a balance sheet.

The final is the liberating system. Since there is always counterparty risk a great transactions aid the bank as well as the depositor will have to trust oneself to tell the truth and prepare good in promises : the system forms transactions in addition to certifies that most of promises to be charged for have been placed. In the phase between the financial transaction and the paying down, money turns into a credit written and recognised based on have confidence in.

What happens to these kind of three attributes in a crypto-based monetary current economic climate? Let’s take them.

Storage That capital needed your warehouse has been taken for granted. I thought this was a design limitation connected with salt, your old watches, silver and the like. Specie derives passion for space. You may need a secure room or space for it. Also, it is weighty plus impractical regarding moving via space to help space by way of single particular person. Murray Rothbard, in his ebook “Mystery with Banking, ” regrets such factors quite possibly exist and also pointedly suggests that if people today had offered coins in lieu of relying on pieces of paper money by banks, we were able to have definitely avoided a century of monetary panic along with inflation. Here is a hypothetically sound issue that incurs practical disadvantages. The reason for insights to represent stirpe is to help in trade in a fashion that meets the demands of consumers.

Nevertheless thanks to Bitcoin, we can these days see that the following warehousing provider was in request due to real factors instead of fundamental models. Bitcoin possesses all the features of traditional funds but offers two merits: it is weightless and gets attached to no natural space.

The funds is “stored” in the the cloud on the blockchain. The personal jean pocket serves the particular function regarding providing admittance via double-key cryptography. Assuming you have your non-public key rapid and this can be about physical cardstock or for a device not connected to the world-wide-web - you have got all you need to assemblage your own exclusive banking contr?le. Anyone across the world can do it while not trust romantic relationships, personal name or history of credit. The bodies that appear as if banks instructions services similar to Coinbase which hold your critical for you aid maintain any full-reserve protection plan or threat losing typically the trust within their customers.

It can be impossible that will anticipate what sorts of crypto-derivatives can become being securitized and dealt with in the future. Really, the last being unfaithful years of often the previously out of the question should induce everyone to generally be humble with their predictive future. That said, you will find good reason to know that the remise of counterparty risk built in in every noncash transaction could drive market segments toward larger accountability in just about every sense. This alone could solve the exact age-old question about fragmentary; sectional versus 100 % reserves while using finest possible decision.

The dilemma does not have to end up being resolved simply by intellectuals in addition to policies. It is actually settled by market, in the event that technology will allow people to include goods and services by using a spaceless plus weightless dollars that requires simply no warehousing.

Paying down As for eradicating, the single a lot of difficult-to-grasp aspect of Bitcoin is the way it cuts down or takes away counterparty chance associated with economical exchange. Ventures are approved as they are designed. This has nothing you've seen prior been probable in the track record of money and also finance using a geographically non-contiguous basis. By using traditional income, for removing to occur right away, you have to often be there, exchanging physical $ for services and goods.

Cryptocurrency grows this accurate financial placement on a peer-to-peer basis amongst any not one but two individuals any location. You are pretty much trading your personal stuff with regard to their stuff. Use titles usually are rearranged if your transaction will be confirmed inside ledger.

Just what exactly role will now be here for common banks as a guardians involving settlement? In regards to clearing companies, so far as We can tell, that factor is taken off for all deals that are your heart set in the on the spot of their seeking (the time frame delay interested in moving crypto is treats like a wait; it creates zero credits).

Why don't you consider Credit? I will be habituated towards thinking that the entire world runs with credit. That certainly is because it may. This isnt because i'm financially irresponsible, are unable to express no, love large loan companies or are ready to pay high interest6140. It’s considering that the sophistication of contemporary financial engineering has been hobbled by traditional payment technological know-how that even now operates currently the way that did during the time of your Medicis.

No matter the reason, the fundamentals are similar to the in classic finance now as compared while using Medicis. Them still relies upon trust interactions, credit programs that defend property in addition to embody the idea, and a occasion delay intended for transactions to. As a result, any transaction that isn't conducted in the flesh via funds depends on a number of extension connected with credit thus involves intermediating third parties, understanding that in turn really involves many counterparty possibility.

It is appealing how bit of we see why today, although the truth results in being obvious for close check-up: Every exchange today will either be based on dollars (instant label exchange along with clearing) or maybe credit (which involves confidence relationships in addition to counterparty risk). Services including Venmo, Look for engines Payments, PayPal or plenty of others are not any different to that end from Passport, Mastercard as well as American Share. They can be roughly expensive, bill different individual fees, plus employ unique interfaces and also security practices. But in the tip, these expert services all make use of credit terms and conditions and do not give instant liberating. They simply simply cannot because the decrepit technology with national debts does not allow for it.

Cryptocurrency as a means regarding facilitating substitute is different within respect. A value will not be tied to some sort of nationalized forex at all. And also, it has virtually no value as the commodity or simply asset in anyway. Its valuation is based on utilization value of products and services provided by the particular cloud-based handed out ledger.

The huge use of credit-based exchanges when we see around national charges would not are available in Bitcoin precisely because of the technology disintermediates the fiscal industry, extracting both the require for trust connections as well as paying down services. Could possibly there present themselves a market to get crypto-substitute money derivatives? Exclusively the trend of these niche categories can show you this undoubtably, but close to this much remains legitimate. It will not always be about building new capital being made possible by the standard protocol. The variance between funds and dollars substitutes shall be clear without obscured by simply retrograde certification technology.

Also, the your current problem involving prevailing blockchain solutions likely will necessitate a new convention connected with using off-chain platforms pertaining to smaller orders, as Chips Szabo features suggested. Like transactions undertake involve counterparty risk and not credit construction as such; like networks buy and sell more like credit cards. The chief blockchains shall be used for very last settlements though “lightning networks” become trust-based credit applications (money substitutes) - by means of choice though not by prerequisite.

Additionally , the huge industry connected to credit-based ventures includes a wide machinery with fraud protection and prohibition of personality theft. This can be made avoidable because personal information is cryptographic and not own.

Credit Areas All this reported, there is however a role regarding credit stores in cryptocurrency. They arise precisely as they simply would within the purely specie-based monetary strategy in which most people carried all over their own loose change or placed them in your house. If you have too much monetary stashed in your own wardrobe, you may be prepared loan these folks for others make use of and do hence at a gain. In order to limit the risk of normal and promise your financial commitment, you need assets; this can carry any kind. You also need tough a have faith in relationship, just about everywhere with almost every other loan current market.

The difference is usually subtle although foundational. While you loan exclusive money, that is lost title to the next money, equally if you had relocated physical building. Contractual phrases would collection the ways where a later trade would exist in accordance together with the terms on usage. Again, the direction to think about this is definitely how functions in a income economy: People loan someone $20 along with hand them cash. You can not get it rear by induce. As the supplier you depend establishing your contractual marriage that allows expectations intended for future transactions, along with quite a few measure of probability.

These areas have already made. Companies for instance Bitbond in addition to BTCPOP deliver services for both lending income and checking out money, along with the terms regarding exchange favoring both parties. For the present time, such stand alone services will be risky since the younger sector can be replete by using sketchy arrangements and sham (“Lend your individual BTC opinion and I makes up you returning, I promises. ”).

Additional promising is a straightforward margin merchant service made available from dollar/Bitcoin geneva chamonix transfers themselves. The exact borrower will never take special possession of typically the coins nonetheless is rather lengthened by the change at the behest of the shopper who wants to receive a regular charge of give back. An example is definitely the lending program provided by Poloniex. The trouble most of these markets currently have so far spotted is that retaining crypto is much more profitable in comparison with lending the item at applicable rates. It may not always possibly be true.

Because these markets grow, it would not possible be a surprise to uncover that the amount of gain for the the last resort would be on the rate you can earn out of nationalized capital. The risk of traditional would not often be guaranteed in any respect as with government-backed financial institutions, a new a critical bank which can be capable of prints unlimited little money. On the flip side, this would as well eliminate the espiritual hazard of unwise business loans or securitizing debt repayments without proper proof, such as developed during the construction bubble.

During the century involving central banks and loans, we’ve witnessed interest rates downfall inexorably plus the terms connected with credit issuance shifting greatly to want longer words, ever a smaller amount collateral plus ever more challenging titles to get ownership. Around cryptocurrency-based credit ratings markets, i will be likely to to view opposite direction: shorter terminology, higher secured personal requirements, undoubted titles demarcating indisputable liberties of use and observance of terms and conditions built into loan companies protocols.

Innovations in Sound Capital Christine Lagarde is right: One can find dramatic complications to the state of affairs that are being made available up because of the advent of cryptocurrency. Monetary alternate will function the same as hard cash exchange, along with the sophistication of your payment and also settlement modern advances will connection up with often the sophistication your financial methods.

In some considérations, cryptocurrency could possibly appear to be even more stingy as compared with our present-day highly leveraged, unstable along with centrally by its systems. On the other hand, the new earth will be on a financial basis sound, dependable, radically disintermediated, decentralized in addition to democratized for the reason that anyone, with any personal means plus access to loan merchants, can play a part within them.

We’ve exclusively begun look at what a the radical change it might be if your money essentially gained cost over time (as crypto includes for 90 years years, as well as dollar would in the late nineteenth century), which means you actually cultivate more successful merely by way of not expending. Such a switch would be substantial, not only pertaining to finance additionally the way of life at large.

Exceeding a century, the exact banking procedure has been useful to fund hawaii, destabilize our economy, loot individual savings, bar people who have no access, enhance financial addiction and even generate violence likely on an freakish scale, most of because most people didn’t employ a different systems for making attainable monetary substitute. That monopoly is now simply being shattered. Tone money exists. The give up of the lording it over class recently begun.

[wionews]

Opinion: Vikram, Betaal and 4 Supreme Court judges - A 21st Century fantasy

Never has India's judiciary been under the kind of strain we witnessed last week when four Supreme Court judges effectively came out against the Chief Justice of India, ostensibly on procedural issues. There is no clear evidence of wilful impropriety on either side but a weekend on social media is enough to see the sad fact that the independent judiciary is being measured through political prisms. Not since the resignation of three SC judges during the Emergency, when they were superseded to the post of the Chief Justice of India during Mrs Indira Gandhi's reign as prime minister, has the judiciary witnessed such tumult.

The whole thing is so complex, that it reminded me of the tales of King Vikramaditya and his ghostly companion of dubious virtue, Vetal (Betaal). These were tales of wisdom for rulers, focusing often on tricky situations and moral dilemmas. So I decided to write a tale inspired by the Supreme Court crisis. Be informed it is only fiction and the characters are fictional. And draw your own perspectives. Like an abstract, modern art painting, this is for you to figure out.

* * *

Vikram grabbed the corpse-like Betaal from the tree and started his silent march to attain occult power, when Betaal giggled as usual and said: "Today I want to tell you not a tale from the past but one from the future, when judges of a country challenged their own chief, in a time when it is not the king but independent judges pronounce verdicts and hold their society together as nobles and merchants join ordinary subjects in choosing their rulers."

And so the tale began.

* * *

The Chief Justice of India, due to retire in two weeks, is about to deliver a verdict on a man accused of aiding a terrorist attack when he receives an anonymous call, threatening harm to his wife if his verdict confirmed a death sentence given by the lower courts. The CJI is in a dilemma. He does not know who issued the threat and whether it is real but he fears for his wife's safety. After all, she is the one who stood by him as he delivered a series of perfect judgements in the public interest, never worrying about what others said. On the other hand, if his verdict was influenced by the threat, he would be failing in his duty. Strangely, he had already written a verdict acquitting the accused because the evidence against him was more circumstantial conjecture than real and under the principles of democratic jurisprudence, he could not give the benefit of the doubt to the prosecution. However, he thought, if the threat had come from comrades of the accused, he would be setting a bad precedent of allowing blackmailers to influence the judiciary.

Now, one of his junior judges had gone to the same boarding school as one of the influential cabinet ministers, and this had already complicated perceptions in the coffee houses of the country. 

The CJI thought hard about all the judges serving in his council and looked at his own responsibilities as defined by guidelines. He decided then to change the duty roster of various judges.

To a judge who was a media favourite for ruling in favour of woman victims and corruption in sport, he allocated a nondescript case on cooperative banking.

To a judge who was said to be close to the cabinet minister, he allocated a case that involved allegations of impropriety in loans given to the minister's family company. To the judge who was due to succeed him, he allocated a political case that would embarrass the ruling party if the verdict went against it.

To a fourth judge, who was known for labour cases, he allotted a patent case that was out of his normal specialisation.

The CJI went off on a weekend holiday to a mountain resort where cellphone signals were not easy to catch and switched off his phone. Now, the judges in question were outraged and met over some filter coffee at the residence of one, and in the best traditions of the judiciary, decided to act on the hard fact that one of the judges had gone to the same school as an accused minister. The entire business of roster changes seemed uncomfortable for them. They called a press conference and protested against the CJI's arbitrary ways, underlining the "first among equals" principle at the highest level of the judiciary.

The CJI returned from his vacation to find that his roster change had snowballed into a political controversy. He immediately sent his resignation to the President of India, saying his integrity was being questioned and public perceptions were important. The President, a wise old man, sent back the resignation for reconsideration, saying it was equally important for him, the President, to not accept a resignation while he was bound by cabinet advice, as that would be seen as the executive interfering in the independent judiciary.

Meanwhile, bar councils across India and the Supreme Court Bar Association rose up to underline the independence of the judiciary and demanded that issues be discussed at a full meeting of all sitting Supreme Court judges. The CJI readily complied and said it was for the council in its wisdom to decide what to do next. But he posed some questions: "What, gentlemen and ladies, is the meaning of the word "first" when put alongside equals? What added privilege or responsibility does it entail? Will I be failing in my duty if I did not take the words seriously? And what evidence do we have to suggest that a judge should not examine a case involving his schoolmate when there were hundreds in his time who were his schoolmates?"

The judges, in the best traditions of the judiciary, in their collective wisdom, agreed that innuendos do not amount to evidence, though there were murmurs all around. Under pressure from the bar associations, they also decided it was not proper to invite any executive interference. They told the CJI that rosters must be made in line with procedures and conventions.

Now, the CJI said: "If conventions alone mattered, we would be riding horses and not motor cars. If there was no special meaning attached to the word "first" or "chief" there would be no need to have the title such as I do. I would be failing in my duty towards the letter and spirit of the law as I see it, and hence I resign."

The President of India was now forced to accept the resignation. After all, only one more week was left for the end of the CJI's term and everything was now a technicality.

What would happen to pending verdicts? The CJI opined that both the roster and the collective wisdom of the judiciary mattered and hence left it to his successor and the judges' council. Now, his successor was known to be a hardliner on national security issues. The judges' council in its collective wisdom decided that serious cases must be considered by larger benches. The terrorism case was opened again to a large bench, while a panel of senior judges was appointed to revisit procedures and conventions on why and how cases must be allocated so that neither individual biases nor individual specialisation was ignored in allocation of cases.

The CJI retired a happy man. 

***

Now, Betaal asked King Vikram: Was the CJI right? Or were the judges right? Was justice done and delivered?

Replied King Vikram: "The CJI did the right thing because judges have their duties in their personal lives and as common citizens as well. By making things vague, he left the matter to the God above and the wise men below. He also made sure whoever issued the threat did not have his way."

"The President did well to insulate himself from the judiciary because that would damage the image of the party he came from.

"The judges only adhered to established conventions and were rightly concerned about propriety. Bound by the chatter of the bar associations and the CJI, they were rightly talked into contemplating on issues going beyond conventions so that a higher sense of justice would prevail.

"Those who issued the threats would never find out what really happened because whatever the CJI did was seen as part of his wider duties and not influenced by threats.

"The terrorism case rightfully deserved a larger bench and it was better for the judges' council to set the conditions for this than a diktat from above because the media had become shrill and stupid.

"Above all, the CJI retired in peace because he had done all his duties well as much as an individual could, and the institution of the judiciary was only maturing through his actions."

On hearing Vikram's response, Betaal replied: "Your comprehensive sense of justice is remarkable but you have shattered the peace of this place. So I have to leave you." 

Betaal then laughed out loud, rose up and looked for a tree but realised it had travelled in time to tell its tale better. It found itself near Pragati Maidan from where it could get a good view of the Supreme Court of India. Not finding a tree easily in the concrete jungle, it swooped down only to see a dark night over the venue where the World Book Fair was on. It picked up a book at random and sat atop a skyscraper before heading to its familiar tree in the past. The book was one by Gabriel Garcia Marquez.

  (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL).

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[jokingjustice]

IF GRIEVANCE COMMISSIONER FOR OVERSEAS PAKISTANIS ADVISES OTHERS, THEN VERY LOGICAL IS HIS OWN SHOULD BE Surfing the net, my eyes caught Minutes of the meeting of the Advisory Council held on 30.08.2015 in the Ministry of Overseas Pakistanis. The representatives of organizations concerned with the Overseas Pakistanis affairs attended it.  Reviewing the progress on the decisions taken in the previous meeting held in the Federal Ombudsman Secretariat, it was noted that the directives of the Grievance Commissioner for Overseas Pakistanis (Federal Ombudsman Secretariat), on the development of websites of the Ministry of Overseas Pakistanis, Bureau of Immigration & Overseas Employment etc could not be implemented due to non availability of technical expertise.   Reading it, this acute diabetic and fragile, for the last 4 days having acute sore throat cough watering nose flew sneezing and shivering, could not stop his abrupt uncontrolled laughter, which in turn, cleared his throat from blocking sputum which otherwise antibiotic could not. 2. This senior citizen with 50 year rich varied high office experience, could never understand as to why after establishing earlier, and in presence of a “Dedicated Complaint Cell for Overseas Pakistanis in the Federal Ombudsman Secretariat headed by the ex Pakistan Ambassador to Saudi Arabic (Mr Sher Afghan, named perhaps), what was the “real” need of establishing another Grievance Commissioner?  Perhaps this “not understanding” is because I am from amongst the general fool masses, whereas for such high caliber wisdom related things there is an old phrase “جانے ہی علم دین کی علم دین”.  During 1980s and 1990s when there was no concept of “separate” cell or any Grievance Commissioner for the Overseas Pakistanis, I must raised more than a hundred complaints mostly of collective interest.  Nuclear waste carrying ship heading towards Pakistan was stopped, amendments in Foreign Exchange rules affecting Overseas Pakistanis were made, unclaimed dormant accounts were ordered to be made public through newspapers, children fee on Passports was amended, 24-hours banking booths were established inside airports departure lounges etc; all raised by me but in all these complicated cases never ever even once I was summoned by the then Federal Ombudsman to come personally to Pakistan in the Hearing. Came Overseas Pakistanis separate cell and Grievance Commissioner, the meaning of justice “free and at door steps” stood changed.  For example, last year National Savings did not provide me a free of cost distributed application Form. For the benefit of collective interest of Overseas Pakistanis, I filed the complaint with the Federal Ombudsman. Prompt, came a Hearing notice requiring me to come to Karachi which was a prescription of Rs. 2 lac (for me in the middle east, for a complaint from USA Rs. 5 lacs).  This is the new translation or meeting of “free at door step”.  I asked my nephew in Pakistan, on his way to office fetch a free Form and post it to me.  He spent Rs. 30 on postage and I got it thus saving Rs. 199,970 which otherwise the ombudsman wanted me to spend.  It did not surprise this senior citizen at all.  Those who get huge from poor peoples fund “Eid Bons”, they can like French Queen rightly in their wisdom take Rs. 2 lac just a nominal insignificant amount. 3. This so big laugher was on reading that he, who, had directed the development of the websites, his own official website (Grievance Commissioner’s) http://overseaspakistanis.ombudsman.gov.pk itself is not functional for the last about two years.  Before ending these lines, a few minute ago, I re-visited Grievance Commissioner’s own site which still today 27 November 2017 is not accessible. When this website was established, I visited it and found some good material.  This website without any doubt was established on huge national expense and must be incurring huge on its relevant webmaster team.  Before my eyes catching these Minutes, a few minutes earlier to that I saw a letter to the Editor from a student.  He complained that most of the Government websites contained old obsolete information.  He quoted that for his research relating to his agricultural degree, he could find incomplete and old information on the agricultural department website.   4. A question often is asked what actually ailed our country?  Answer is very simple that everyone worth of his salt who advises the others to do this and don’t that, himself always takes himself exempt from purview of that do & don’t.  For example Nawaz Sharif tours abroad, advises Pakistanis and foreigners there to invest in Pakistan where, according to him, their investment was very safe.  Acting on his own advice, he himself, however, keeps all his savings abroad!  Take another example.  Purchase of high capacity cars was then banned for the government offices.  When in his press conference, the reporters questioned the then Federal Ombudsman Mr. Usman Ali Shah as to how he purchased one in violation of the government ban, he became angry retorting back that these reporters were blind that they were taking note of “just a small violation of his” but were not seeing the volume of work he was doing.  He further denied that there was any tape recorder in his new car as the Government rules did not allow that.  After the press conference, when Mr. Usman Ali Shah was leaving in his car, the reporters gathered around the car and signaled to the naked visible installed tape-recorder.  The angry Ombudsman, the protector of citizens rights, at this shouted that he could take contempt notice again these reporters.   5. One often reads or listens in the talk show debates where all that huge foreign loans or grants are “utilized”.  I have at least more than half a dozen time, though can’t quote reference, read or heard in talk shows, that the world bank donation for reformation of justice was spent mostly on meetings, seminars, renovations and tours.  It appears right as reformation done does not appear visible anywhere. 6. In 2011 the World Bank donated a large sum for reformation of the ombudsman system in Pakistan.  Accordingly, a “Forum of Pakistan Ombudsman” was created.  The Tax Ombudsman was elected as President of the Forum.  What this Forum practically brought reforms?  What improvement this Forum brought in the “working” of the ombudsman system in Pakistan?  Perhaps no one can definitely table.  On what reformation the world bank donation was “applied”?  Independent children complaint cells both in Federal and Provincial Ombudsman Secretariats were “established” including at district levels.  Children of our country started filing their complaints, there can’t be more cruel thing to say than that.  This sick senior citizen might with a bit pain trace out a photograph of such a children complaint cell, giving sick vomiting feeling, seeing that the Cell enjoying on world bank donation did not know even the correct spelling of “children” for whom it claimed worked. 7. Did the Forum bring any change for the ordinary masses? Yes, of course.  I typed my complaint on “Word 2010” in UK English version on a costly laptop, printed it on high quality lazar printer.  It was rejected by the Federal Ombudsman saying that a complaint should be “in writing”.  I addressed a complaint to “The Honourable Federal Ombudsman”.  It was rejected on the ground that a complaint should be addressed to the “Wafaqi Mohtasib”.  This is change practically came!!! On the official website of the Wafaqi Mohtasib, the title embodied is as “Federal Ombudsman” as well as on the 1982 Ordinance establishing the system.  Sometime this 70 plus in his this old age realizes perhaps his adding the word “Honourable” was unnecessary hence rejection. 8. An ombudsman office high executive (Grievance Commissioner) directs others for developing or updating their websites.  The website of the “Forum of Pakistan Ombudsman” today Monday the 27 November 2017 displays Mr. Anisul Hassan Moosvi as the Banking Mohtasib whereas, as far as this ordinary knows, he retired in May 2017 as a news item then appeared with photograph showing him sitting with the President of Pakistan paying on his welfare call.  Who is the new Banking Mohtasib in his place, at least I could not trace the information from the Banking Mohtasib website. The Forum’s quarterly newsletter July-September 2017 has just been published on 01.10.2017. Adding another feather to web-technology efficiency, has till today the 27 November 2017 not been uploaded by the efficient Forum and its web-master team on the Forum’s official website.  This newsletter quotes Mr. Anisul Hassan Moosvi as Banking Mohtasib which suggests that though his tenure is complete, he still is working awaiting the new comer to take charge.                                                                                             The Forum website further showing its “efficiency” displays today the 27 November 2017 Mr. Muhammad Salman Faruqui as the Wafaqi Mohtasib, whereas he retired February 2017 and in lieu Mr. Syed Tahir Shahbaz since then has taken charge of. This Forum of Pakistan Ombudsman is housed in the office building of the Federal Tax Ombudsman.  A complete separate official set up is present.  The Federal Tax Ombudsman is the President of the Forum.  Even then, despite remaining in the same building the Forum does not know that Mr. Abdur Rauf Chudhry, has gone and Mr. Mushtaq Sukhera has taken charge as Federal Tax Ombudsman (and perhaps as per principle is now the President of the Forum”.   9. Take, as a specimen, the website of Banking Mohtasib Pakistan http://bankingmohtasib.gov.pk.  May 2017, when the outgoing Banking Mohtasib Mr. Anisul Hassan Moosvi, sitting in front of His Excellency the President of Pakistan, was singing his performance during his farewell call, he believed, as showed on his official website, that after relinquishing his charge by Mr. Javed Sadiq in 2010 the post of the Federal Ombudsman was “continuously vacant”.  Even today the Banking Mohtasib firmly stands on his this information.  I am sure during 2013-17, the Banking Mohtasib must had many a time met Muhammad Salman Faruqui, even then he did not know that Faruqui was the Federal Ombudsman.  This banking mohtasib website today 27 November 2017 shows Dr. Muhammad Shoaib Suddle as the present Federal Tax Ombudsman whereas the fact is not just Dr. Suddle, even Mr. Abdur Rauf Chudhry taking charge of Federal Tax Ombudsman from Dr. Suddle too has gone.  The banking mohtasib or his office does not know that since months Mr. Mushtaq Ahmed Sukhera, on whose appointment the talk shows made comments, is on the chair of the Federal Tax Ombudsman.  Today 27 November 2017 the Banking Mohtasib, as per his website, believes Mr. Azhar Ali Faruqui is the Federal Insurance Ombudsman. Whereas in November 2015 Mr. Raeesuddin Parach took oath as the new Federal Insurance Ombudsman. I am sure Mr. Anis the then Banking Mohtasib must had been present in the oath taking ceremony in the presidency. And etc.  The Government website are supposed to display update official information.  The students, functionaries and researchers take required information from these sites.  In 2013 the Law changed and Appeal against the Findings of the Banking Mohtasib shifted before the President of Pakistan instead of earlier State Bank of Pakistan.  The Banking Mohtasib Pakistan including a large army of advisors, senior advisors and consultants even “today” don’t know this Law relating to their own office and their official website misguides the complainants to file Appeals with SBP.  I myself was misled by this info and got my right of Appeal time barred.     10. Almost every website, a governmental or a private, keeps prominently a link or section under the label like “Latest Update or What is New”.  Today 27 November 2017 the “new and update” for the Banking Mohtasib is March 2013 item re appointment of Mr. Anisul Hassan Moosvi as Banking Mohtasib.  He retired in February 2017 but still the “new and update” for the Banking Mohtasib, this appointment and taking charge of.  During all this four and half years there had not been anything new or important than the four years old appointment news.   11. It is generally said that in old age one becomes again a child and, as such, talks childish foolishly.  In the meeting, the chair desired that the Overseas Pakistanis Foundation who had the technical expertise to send its web developers to the Ministry to do the needful.  This 70 surely is not just a fool, but a bloody fool, that is why he childishly wonders as to why the learned Grievance Commissioner for Overseas Pakistanis did not ask the same OPF technical term to “repair” his website not-working since about two years. 12. The other day well known anchors Rauf Klasra and Amar Mateen discussing the unprecedented fog in Lahore due to criminal killing of environment by (زکوٹا جن), said that where in the world the fog reached to 380 degree, the whole city under the universal practice is get evacuated.  They said in Lahore it was around 750 degree. They summarized that Advocate Harris, Chief Secretary Punjab and other Federal & Provincial Secretaries/Departmental Chiefs needed to be summoned by Apex Court and, if there is any real intent to save our-children generation, “straightaway” send them all direct to jail as now there is no national time to waste in deliberating hearings as criminal-negligence is nakedly proven.  This senior citizen in his age group called generally “hanging legs in the grave”, firmly believes that if this country is to be saved, without any further deliberations, the Secretariat-Secretaries of Banking Mohtasib and the Forum including advisors, consultants, Commissioner, web-teams; all be sent to jail as they have not just visibly failed in their duty to keep these costly websites updated to provide public true information but also on account that these errant let the national money spent go criminally wasted.  If a website due to non availability of any technical-assistance gets delayed in “development”, that is one thing which though should not be, but an already fully developed functional website going dead appearing to be for good, is more serious and to me fetches criminal proceeding if anyone in a Government is honest to the public money. In Such a straight action, may perhaps, bring the derailed country back on track.  I am more thank confident, it is just a wishful thinking of a fool as during his life nothing like that is going to ever happen.   13. PS:  This senior citizen whose civic spirt the then Ombudsman many a time appreciated, with his 75% blindness after losing an eye in operation, has without any pre drafting or post checking playing with key board has just scribbled it. Hence error or inconsistency expected for which apologies.

[ecopackindia]

High Court Observations on the regularisation of lands acquired by BDA

High Court Observations on the regularisation of lands acquired by BDA,New thippasandra BDA

The High Court of Karnataka has observed that the actions regarding the regularisation or re convey of BDA Acquired properties within the BDA limits as per the new Amendment is subject to the final outcome or the order from the Court. The Government of Karnataka proposed to regularise the properties, which are constructed in the BDA Acquired lands and went ahead with an Amendment and it was…

[legalseat]

Application Under SARFAESI: Supreme Court’s Liberal Approach

[Guest post by Richa Saraf, Assistant Legal Advisor at Vinod Kothari & Co.]

In the case of M.D. Frozen Foods Exports Pvt. Ltd. v. Hero Fincorp Ltd.,[1] the Supreme Court held that there was no illegality in a non-banking finance company (“NBFC”) invoking the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”) for recovery of loan arrears with respect to an account classified as non-performing asset (NPA) before the NBFC was notified under the Act. It also clarified that an NBFC is entitled to initiate both arbitration proceedings and SARFAESI proceedings with respect to a loan account, and that the ‘doctrine of election’ was not attracted in such a scenario. There was a division of judicial opinions among the High Courts: while the Full Bench of the Orissa High Court, as also the Delhi High Court and the Allahabad High Court, have taken a view favourable in terms of the simultaneous legal processes under the SARFAESI Act and arbitration recovery proceedings, the Andhra Pradesh High Court has taken a divergent view. After careful scrutiny of the rival contentions and the judicial precedents cited, the Supreme Court has finally settled the law on the point.

Background and Facts

M.D. Frozen Foods Exports Pvt. Ltd. (the appellant) borrowed monies for their business against security of immovable properties by the creation of an equitable mortgage by deposit of title documents. The account of M.D. Frozen was classified as a NPA.

The agreement between the parties contained an arbitration clause, and thus the matter went to arbitration on Hero Fincorp Ltd. (the respondent) invoking the arbitration clause. However, prior to this invocation, a notification was issued in exercise of powers conferred under section 2(1)(m)(iv) read with section 31A of the SARFAESI Act, wherein Hero Fincorp was notified as a financial institution (the “Notification”).

In view of the aforesaid Notification, Hero Fincorp issued a notice under section 13(2) of the SARFAESI Act. The statement of claim was filed by Hero Fincorp before the arbitrator and interim orders were granted by the arbitrator restraining M.D. Frozen from creating any third party interest over the properties. The legality of the arbitration proceedings was challenged by M.D. Frozen in view of the invocation of SARFAESI Act. After the challenge was repelled both by the arbitrator and later by the Delhi High Court, the matter came up before the Supreme Court.

Issues Resolved

1. Whether resort can be had to Section 13 of the SARFAESI Act in respect of debts which have arisen out of a loan agreement/mortgage created prior to the application of the SARFAESI Act to the lender?

The SARFAESI Act was brought into force to solve the problem of recovery of large debts in the form of NPAs. Thus, the very rationale for the Act to be brought into force was to provide an expeditious procedure where there was a security interest created in favour of the lender. It certainly did not apply retrospectively from the date when it came into force. The question is whether the Act is applicable to the lender at a subsequent date, and thereby allowing the lender to utilize its provisions with regards to a past debt, would make any difference to this principle. The Supreme Court answered in negative. The Act applies to all the claims which would be alive at the time when it was brought into force. Thus, as against Hero Fincorp or other NBFCs, it would be applicable similarly from the date when it was so made applicable to them.

In Sarthak Builders Pvt. Ltd. v. Orissa Rural Development Corporation Ltd.[2] the Supreme Court has succinctly set out this aspect. No doubt, till the time the lender was not a ‘financial institution’ within the meaning of section 2(1)(m)(iv) of the SARFAESI Act, it was not a ‘secured creditor’ as defined under section 2(1)(zd) of the SARFAESI Act, and thus could not have invoked the provisions of the SARFAESI Act. However, the right to proceed under the SARFAESI Act accrued once the Notification was issued.

The case of Unique Engineering Works v. Union of India[3] dealt with the issue of retrospectivity and retroactivity. In case of retroactivity, the Parliament takes note of the existing conditions and promulgates the remedial measures to rectify those conditions. In fact the SARFAESI Act, in our view, was to remedy such a position and provide a measure against secured interests. The scheme of the SARFAESI Act is really to provide a procedural remedy against security interest already created. Therefore, an existing borrower, who had been granted financial assistance, was covered under section 2(f) of the said Act as a ‘borrower’. Not only this expression, but the definition clauses dealing with ‘debt securities’, ‘financial assistance’, ‘financial assets’, etc., clearly convey the legislative intent that the SARFAESI Act applies to all existing agreements irrespective of whether the lender was a notified ‘financial institution’ on the date of the execution of the agreement with the borrower. The scheme of the SARFAESI Act sets out an expeditious, procedural method, enabling the bank to take possession of the property for non-payment of dues, without intervention of the court. The mere fact that a more expeditious remedy is provided under the SARFAESI Act does not mean that it is substantive in character or has created an altogether new right; if this view is accepted, it would imply that there is an inherent right to delay the enforcement against the security interest!

In a similar vein, there are observations made in the case of In re Athlumney Ex parte Wilson[4], where the question posed before the Queen’s Division Bench was whether section 23 of the Bankruptcy Act, 1890 was retrospective in its operation. In the aforementioned context, Wright, J., speaking for the bench, illuminatingly opined:

Perhaps no rule of construction is more firmly established than this – that a retrospective operation is not to be given to a statute so as to impair an existing right or obligation, otherwise than as regards matter of procedure, unless that effect cannot be avoided without doing violence to the language of the enactment. If the enactment is expressed in language which is fairly capable of either interpretation, it ought to be construed as prospective only… it is a general rule that when the Legislature alters the rights of parties by taking away or conferring any right of action, its enactments, unless in express terms they apply to pending actions, do not affect them. It is said that there is one exception to that rule, namely, that, where enactments merely affect procedure and do not extend to rights of action, they have been held to apply to existing rights, and it is suggested here that the alteration made by this section is within that exception.

2. Whether the lender can invoke the SARFAESI Act provision where its notification as financial institution under section 2(1)(m) has been issued after the account became an NPA under section 2(1)(o) of the said Act?

The Supreme Court held that the date on which a debt is declared as an NPA would have no impact. The provisions of the SARFAESI Act would become applicable qua all debts owing and live when the Act becomes applicable, provided the following factors existed:

– Existence of a present actionable debt;

– Status of the person invoking the jurisdiction is that of a secured creditor;

– Assets have been secured in satisfaction of the debt; and

– That the debtor/borrower should have been declared an NPA.

3. Whether the arbitration proceedings can be carried on along with the SARFAESI proceedings simultaneously?

A claim by a bank or a financial institution, before SARFAESI Act and Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (“RDDB Act”) came into force, would ordinarily have been filed in the civil court having the pecuniary jurisdiction. The setting up of the Debt Recovery Tribunal under the RDDB Act resulted in this specialised tribunal entertaining such claims by banks and financial institutions. In fact, suits from the civil jurisdiction were transferred to the Debt Recovery Tribunal. The Tribunal was, thus, an alternative to a civil court recovery proceeding. Upon the SARFAESI Act being brought into force seeking to recover debts against security interest, a question was raised whether parallel proceedings could go on under the RDDB Act and the SARFAESI Act. This issue was clearly answered in favour of such simultaneous proceedings in Transcore v. Union of India & Anr.[5] The relevant extract is reproduced below:

According to American Jurisprudence, 2d, Vol. 25, p. 652, if in truth there is only one remedy, then the doctrine of election does not apply. In the present case, as stated above, the NPA Act is an additional remedy to the DRT Act. Together they constitute one remedy and, therefore, the doctrine of election does not apply. Even according to Snell’s Principles of Equity (31st Edn., p. 119), the doctrine of election of remedies is applicable only when there are two or more co-existent remedies available to the litigants at the time of election which are repugnant and inconsistent. In any event, there is no repugnancy nor inconsistency between the two remedies, therefore, the doctrine of election has no application.

A later judgment in Mathew Varghese v. M. Amritha Kumar[6] also discussed this issue in the following terms:

A close reading of Section 37 shows that the provisions of the SARFAESI Act or the Rules framed thereunder will be in addition to the provisions of the RDDB Act. Section 35 of the SARFAESI Act states that the provisions of the SARFAESI Act will have overriding effect notwithstanding anything inconsistent contained in any other law for the time being in force. Therefore, reading Sections 35 and 37 together, it will have to be held that in the event of any of the provisions of the RDDB Act not being inconsistent with the provisions of the SARFAESI Act, the application of both the Acts, namely, the SARFAESI Act and the RDDB Act, would be complementary to each other.

A reading of section 37 discloses that the application of the SARFAESI Act will be in addition to and not in derogation of the provisions of the RDDB Act. In other words, it will not in any way nullify or annul or impair the effect of the provisions of the RDDB Act. The Supreme Court was also pleased to fortify the above statement of law as the heading of the said section also makes the position clear that application of other laws are not barred. The effect of section 37 would therefore be that in addition to the provisions contained under the SARFAESI Act, in respect of proceedings initiated under the said Act, it will be in order for a party to fall back upon the provisions of the other legislation mentioned in section 37. These observations thus leave no manner of doubt, and the issue is no more res integra, especially keeping in mind the provisions of sections 35 and 37 of the SARFAESI Act, which read as under:

35. The provisions of this Act to override other laws. – The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law.

37. Application of other laws not barred. – The provisions of this Act or the rules made thereunder shall be in addition to, and not in derogation of, the Companies Act, 1956 (1 of 1956), the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993) or any other law for the time being in force.”

The aforesaid two Acts are thus complementary to each other, and it is not a case of election of remedy. The only twist in the present case is that, instead of the recovery process under the RDDB Act, the concern lies with regard to the arbitration proceeding. It is trite to say that arbitration is an alternative to civil proceedings. In fact, when a question was raised as to whether the matters which came within the scope and jurisdiction of the Debt Recovery Tribunal under the RDDB Act could still be referred to arbitration when both parties have incorporated such a clause, the answer was given in the affirmative.[7] That being the position, the appellants, M.D. Frozen, can hardly be permitted to contend that the initiation of arbitration proceedings would, in any manner, prejudice their rights to seek relief under the SARFAESI Act. In HDFC Bank Limited v. Satpal Singh Bakshi,[8] it was opined that an arbitration is an alternative to the RDDB Act. The jurisdiction of the civil court is barred for matters covered by the RDDB Act, but the parties still have freedom to choose a forum, alternate to, and in place of the regular courts or judicial system for deciding their inter se disputes. All disputes relating to the ‘right in personam’ are arbitrable and therefore the choice is given to the parties to choose this alternative forum. A claim of money by a bank or a financial institution cannot be treated as a ‘right in rem’, which has an inherent public interest and would, thus, not be arbitrable.

The aforesaid is not a case of election of remedies since the alternatives are between a civil court, arbitral tribunal or a Debt Recovery Tribunal constituted under the RDDB Act. In so far as that election is concerned, the mode of settlement of disputes to an arbitral tribunal has been elected. The provisions of the SARFAESI Act are thus a remedy in addition to the provisions of the Arbitration Act. In Transcore v. Union of India[9] it was clearly observed that the SARFAESI Act was enacted to regulate securitisation and reconstruction of financial assets and enforcement of security interest and for matters connected therewith. Liquidation of secured interest through a more expeditious procedure is what has been envisaged under the SARFAESI Act, and the two Acts are cumulative remedies to the secured creditors.

SARFAESI proceedings are in the nature of enforcement proceedings, while arbitration is an adjudicatory process. In the event that the secured assets are insufficient to satisfy the debts, the secured creditor can proceed against other assets in execution against the debtor, after determination of the pending outstanding amount by a competent forum.

Conclusion

The Supreme Court held that the principle of retrospective operation of law was not applicable in the instant case. There was no retrospective operation involved, because as on the date of Notification, the claim was subsisting and operative. Thus, the provisions of the SARFAESI Act would become applicable to all the debts owing and existing when the Act became applicable to the lender. On perusal of the above, it can further be noted that the Supreme Court unequivocally held that the judgments in Sarthak Builders Pvt. Ltd. v. Orissa Rural Development Corporation Ltd.[10], HDFC Bank Limited v. Satpal Singh Bakshi and Pradeep Kumar Gupta v. State of U.P[11] lay down the correct proposition of law and the view expressed in M/s. Deccan Chronicles Holdings Ltd. v. Union of India[12] following the overruled decision in Subash Chandra Panda v. State of Orissa[13] does not set forth the correct position in law. SARFAESI proceedings and arbitration proceedings, thus, can go hand in hand.

– Richa Saraf

[1] Civil Appeal No. 15147 OF 2017 decided on September 21 , 2017.

[2] 2014 SCC OnLine Ori 75.

[3] II 2004 BC 241 (DB).

[4] [1898] 2 Q.B. 547.

[5] (2008) 1 SCC 125.

[6] (2014) 5 SCC 610.

[7] HDFC Bank Limited v. Satpal Singh Bakshi, 2013 (134) DRJ 566.

[8] 2013 (134) DRJ 566.

[9] (2008) 1 SCC 125

[10] 2014 SCC OnLine Ori 75

[11] AIR 2010 All 3

[12] AIR 2014 Andhra Pradesh 78

[13] AIR 2008 Ori 88

The post Application Under SARFAESI: Supreme Court’s Liberal Approach appeared first on IndiaCorpLaw.

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[scottyancey75-blog]

Investing In Real Estate With No Money

Instead of selling the home outright, the seller ends up being the mortgage holder. Title to the home is passed to the buyer but a home loan or deed of trust is registered on the home with a promissory note where the purchaser accepts whatever terms were worked out. This is a personal transaction so basically any rate of interest and/or points might be charged as long as both parties concur. Sellers might need a deposit but if they do not, then you have yourself a no-money-down deal.

Sellers can sell rapidly this method and dump a residential or commercial property that they just may not desire to handle anymore. It also delays the tax expense. They only pay taxes on the quantity that they gather in that year instead of a big swelling amount as they would if the home was offered outright. If they sell the house outright what are they going to do with the cash? They may be able to get a much better return on the cash by taking interest payments from their home buyer than they would by putting the cash in a savings account. Frequently there is a benefit requirement within 3 to five years but the seller might decide to collect payments over a full 30 years, essentially turning the offer into a little annuity of sorts.

Purchasing Real Estate With No Money Down

When taking a look at homes, area is typically the greatest factor in appreciation. As the neighborhood around a house evolves, including transit paths, schools, shopping mall, play grounds and so on, the value climbs. Of course, this pattern can likewise work in reverse, with house values falling as a community rots.

Buying Real Estate With Clayton Morris Podcast

For investor with neither the credit rating nor monetary ability to purchase a home through standard means, it's crucial to bear in mind you still have alternatives available. The following supplies an understanding of the monetary alternatives accessible to investors:

Investing In Real Estate 2017

There are casual property real estate choices where you pay a cost to have the right to buy a house at an offered time, say after a month, for a concurred upon price. Then, you find investors who will pay more than your choice cost for the property. In this case, the premium you get is essentially a finder's cost for matching an individual looking for a financial investment with an individual wanting to offer - no different than a real estate agent. Although this is income, it does not come from buying (i.e holding the deed to) a piece of real estate.

Although it is possible that you may earn earnings from the installation of a cell tower or other structure, the huge majority of house income can be found in the form of basic lease. Your occupants pay a set quantity per month-- and this will increase with inflation and demand - and you secure your costs from it and declare the remaining portion as rental income. While it holds true that you will get an insurance coverage payout if your tenants burn down the location, the payment just covers the expense of changing what is lost and is not earnings in a real sense.

Credit scores are generally based upon a scoring design, with the most popular model being FICO. These scores range from 300 to 850, and eventually figure out an individual's creditworthiness. It looks rather like this:

I do this on celebration. I just recently did a single-family rehabilitation where it simply sort of exercised that I didn't need to bring any of my own loan. The offer sufficed and the fix-up spending plan came in a little under my price quote and I was able to make a decent little earnings without dipping into my account. I have to state, these offers are great if they exercise. Find out how Scott Yancey Help tons of people with his Flipping Vegas

Investing in real estate in nyc

Obviously, there is one significant factor we skipped in our summary - the economic impact of inflation. A 10% inflation of the dollar suggests that your dollar can just buy about 90% of the exact same great the following year, and that consists of property. If a piece of land deserved $100,000 in 1970, and it sat dormant, unloved and undeveloped, it would still deserve lot of times more today. Because of runaway inflation throughout the '70s and a constant rate given that, it would likely take over $560,000 to acquire that land today - presuming $100,000 was fair market value at the time and all other factors stayed consistent.

When they are first beginning out in their career is there regional Real Estate Investors Association (REIA) meeting, if there is one location the new financier ought to go. Although these meetings are notorious for being "pitch fests," if you can around the apparent sales pitches, there are plenty of people at these conferences who are ready to invest with you. Additionally, occasions organized by the Chamber of Commerce, meetup.com, in addition to any organisation gathering are also perfect locations to satisfy possible financiers.

What About MICs or reits? Real estate financial investment trusts (REIT) and Mortgage Investment Corporations (MIC) are normally thought about to be great methods of getting earnings from real estate. This is true, however just in the sense that real estate is the hidden security. With a REIT, the owner of multiple commercial homes sells shares to financiers - typically to fund the purchase of more residential or commercial properties - then hands down the rental earnings in the type of circulation. The REIT is the property owner for the renters (who pay lease), however the owners of the REIT get the income once the expenditures of running the buildings and the REIT are gotten.

Investing In Real Estate Book

Depending on your rights to the land, business may pay you royalties for any discoveries or regular payments for any structures they include. These consist of pump jacks, pipelines, gravel pits, gain access to roads, cell towers and so on. Raw land can likewise be leased for production, generally agricultural production.

Buying Real Estate With No Money Down

For beginners seeking how to purchase real estate without any money down and bad credit, the initial step is comprehending your credit rating. This number, which is basically a statistical approach for lending institutions to identify the possibility of you repaying the money borrowed, is an important element when getting funding for real estate. Quality scores equivalent much better mortgage rates, which results in long-lasting savings, and ultimately winds up benefiting you-- the investor. Check out info here 

Among the preferred approaches amongst real estate investors is to utilize seller financing. This strategy is most typically utilized when building up rental homes or longer-term holds. Typically the seller owns the home "clear and totally free" (no mortgage) however it is not required.

And if you do approach them about a much better opportunity to invest their cash, it's really unusual that they will not at least sit down with you and hear you out. Offered that you have a solid strategy, they are more than going to listen to and consider what you have to state.

Wholesaling: As the introductory course to real estate financial investment, wholesaling requires neither a high credit report or large amounts of money down. Instead, it simply comes down to having the ideal numbers in location. Real estate wholesaling, at its core, include discovering reduced homes, appointing the contract to a potential buyer and earning money to do so.

Investing In Real Estate Reddit

Do not get me wrong, if you can get cash from your bank, then go all out! Today, we will deliberately leave out banks and traditional financing alternatives and talk about ways in which you can finance your extremely first real estate deal with loan not lent from a bank. A few of these sources of funding are opportunities you've most likely never ever even thought about, while others are lying there right under your nose.

I didn't think it either at initially, however when I began networking and talking to people about investing in my real estate ventures, I found that cash is, in truth, everywhere. It is possible to buy real estate without utilizing a cent of your very own money.

Keeping your cash out of an offer is terrific. If you do not have much cash then this permits you to obtain a foot in the door of a terrific market and if you do have cash it enables you to hold it in a rainy day reserve or take on extra jobs.

Purchasing Real Estate Podcast

There are lots of financial investment deals that take place throughout the real estate market on an annual basis. The bulk are attained through standard lending institutions and institutions like banks, but some are achieved through less standard means. In a lot of cases, it's since the investor couldn't raise the capital or didn't have the credit rating to do so.

Buying Real Estate Gary Eldred

Industrial residential or commercial properties can produce income from the aforementioned sources - with standard lease once again being the most common - but can also add another through choice income. Many industrial renters will pay fees for legal alternatives like the right of very first rejection on the workplace next door. These are essentially options that tenants pay a premium to hold, whether they exercise them or not. Choices income is in some cases used for raw land as well as home, however they are far from common.

Investing In Real Estate Vs Stocks

The most obvious source of appreciation for undeveloped land is, naturally, developing it. As cities expand, land outside the limitations becomes increasingly more valuable because of the potential for it to be acquired by developers. Then developers build homes that raise that value even further.

The response to "how to invest in real estate with no loan down" is much easier than one might presume. The trick is knowing the alternatives readily available to you, and ways to utilize them. The following is a beginner's overview of starting in real estate investment without any cash down, consisting of pointers for financiers with bad credit:

Seller Financing: Unlike standard loans, seller financing works like this: the financier purchases the residential or commercial property from the homeowner/seller, instead of a bank, and the 2 sides sign a contract that specifies a rates of interest, payment reschedule and effects of default that both parties have actually concurred upon.

The best ways to Invest In Real Estate With No Money Down

It's essential to keep in mind that while investing in real estate with no loan down deals many advantages, not all cashless offers are worthwhile. Investors equipped with an excellent credit score will not just get a wider variety of alternatives for working capital, however they'll have more control of their financial obligations. It's in your best interest as a real estate financier to ensure that rating stays excellent, as it will offer the finest loan conserving outlet.

Buying Real Estate With Little Money

Another typical method to achieve a no loan down offer is to use private loan. This can either be a wealthy pal or member of the family or it can be an expert private lending institution or tough loan loan provider. These people are not hard to discover if you know where to look.

Investing In Real Estate Online

The initial step is knowing exactly what your credit report is, and understanding how it affects your investment method moving on. Depending upon what your rating is, you may get approved for a conventional loan and be eligible to secure down payment help. Understanding where you stand in the monetary world of credit will only boost your real estate investment strategies, as well as your financing choices. Knowing ways to buy real estate without any money down is very important as a financier, however it's not constantly your only option.

Real estate investment trusts (REIT) and Mortgage Investment Corporations (MIC) are generally considered to be fantastic ways of getting earnings from real estate. For newbies seeking how to invest in real estate with no cash down and bad credit, the very first action is understanding your credit rating. Today, we will intentionally leave out banks and conventional funding options and go over methods in which you can finance your extremely first real estate offer with loan not lent from a bank. I didn't believe it either at first, but as soon as I started talking and networking to individuals about investing in my real estate endeavors, I discovered that cash is, in reality, everywhere. The response to "how to invest in real estate with no money down" is much easier than one might presume. Click here to find out more info

[rebeccahpedersen]

“What If The Whole World Worked The Same As The Toronto Real Estate Industry”

TorontoRealtyBlog

I am absolutely shocked at how slow the market is right now, both in terms of the number of sales, but also new listings.

There’s “nothing out there,” as we continuously say, while hundreds of properties sit on the market, and as we marvel when a hot new listing does hit the open market, albeit mistakenly, in my opinion, since every active buyer has his or her head in the sand.  Wait until after Labour Day, the consensus says.

In any event, we’ll get back to business next week on TRB, but as I soak in the last few days of the Idaho sun, have a gander at my last two videos from my 2015 series with the objectionably-long title.

As I mentioned in Monday’s blog, we actually filmed “The Discount Agent” about eight months previous, but it looked like a couple of eighth-graders filmed it on their handycam, circa 1996.

Another problem I was having early on was that I was asking people around my office to act in my videos (my assistant, my administrator, the part-timers…), and the results were awful.

Enter, Jared.  A guy that randomly showed up to play an extra during the “Real Estate Seminar” video, and who I knew we’d ask to be in our next video.

I know many home-owners, and some of you reading this right now, might see value in listing your home with a discount agent, and saving money on commission.

I don’t blame you.  It’s hard to turn down a $10,000 or $40,000 discount, and if I tell you, “As one of the top 100 out of 50,000 GTA Realtors, I’ll make you that money back, in quadruplicate,” there’s only so many ways I can try to quantify that.

But I’ve seen, first-hand, how awful the part-time, fly-by-night agents can be, and how quickly they’ll sell out their clients (it’s always fun going up against them when I’m on the buy side…), and so I once again thought I’d use the lowest-common-denominator approach in a video, and compare hiring a discount real estate agent, to hiring a discount laser eye surgeon.

I figured that a home is the largest sale the average person will ever make, and eyesight is probably the most important part of a person on which they can have elective surgery.

This is the longest of all my videos in this series at over five minutes, but I had fun with it, and Jared was hilarious.  Here’s the result:

  In the fall of 2015, a lot of my buyers were caught off-guard by how quickly the market was moving.

The spring of 2015, and summer of 2015, were hot, but not insane.

Once the fall market hit, all hell broke loose, and buyers who wanted to “wait until it’s convenient” to see a property were constantly getting left behind.

So once again, I asked myself, “What if the whole world worked the same way as the Toronto real estate market?”

With properties selling in the proverbial blink of an eye, what if I showcased a series of every-day occurrences, happening with the same speed?

I took some heat for this online (who doesn’t?) with the market bears saying I was force-feeding, fear-mongering, and causing mania.  But in reality, I was really just trying to tell people, who didn’t know, or wouldn’t listen, how quickly the market was moving.

Here’s the result:

Okay, that’s it for me, folks!

Back in the office on Saturday, back to work on Monday.

I don’t expect much to happen in the market until Tuesday, September 6th, although I did see a couple of hot new listings in the past couple days, and for the life of me, I don’t know why the sellers are choosing to list now.

Anyways, I’ll be back with some new posts next week.

Ask your dinner date or golf partner this weekend: should Glen Abbey be designated “historical,” or should we allow houses to be built on the land to help with our growing housing crisis in the Golden Horseshoe?

I guess you already know how I’d answer.

Have a great weekend!

The post “What If The Whole World Worked The Same As The Toronto Real Estate Industry” appeared first on Toronto Real Estate Property Sales & Investments | Toronto Realty Blog by David Fleming.

Originated from http://ift.tt/2gagCqD

[junker-town]

The NCAA didn't believe Donte Moncrief's brother could buy a car. So they launched an investigation.

When your brother's under NCAA investigation, you'll pull out ATM receipts and pay stubs and explain your haircutting business just to keep him eligible.

Spencer Moncrief never played a collegiate sport in his 24 years. Yet here he sat again, across the table from NCAA investigators at the University of Mississippi.

By September of 2013, everyone in the room was familiar with one another — Spencer, the brother of then Ole Miss and future Indianapolis Colts wide receiver Donte Moncrief, their lawyer, and the lawyers for Ole Miss and the NCAA’s enforcement team, headed by a man named Mike Sheridan. Multiple sources confirmed to SB Nation Donte was first summoned to meet with Sheridan and the enforcement staff because of a photo of the junior wideout driving a red 2009 Dodge Challenger — his older brother’s car — in April of 2013.

As a result of that investigation, Donte Moncrief was ruled ineligible by the NCAA for receiving impermissible benefits the week of September 16, 2013. Those benefits were defined solely as the ‘09 Challenger, his brother’s car.

The notice from the NCAA didn’t break publicly. At the time, Ole Miss was on a bye before heading to play Alabama. But Moncrief’s future NFL career was now in serious jeopardy.

On September 25, Spencer met again with the NCAA, having been instructed by his attorney to answer any question, provide any document possible to get his brother eligible to play football in Tuscaloosa in four days.

“To prove I owned my car, basically,” he says. “They hung up my brother’s career for that.”

This was the last time any of the Moncriefs would meet with the NCAA. Sheridan finally had his ace card on the Moncrief brothers, producing a copy of a stay folio (a receipt from a hotel visit that contains guest and financial information) that Sheridan said proved Spencer Moncrief was at a Comfort Suites in Gulfport, Miss., on March 7, 2013, the exact time Sheridan alleged that the monthly payment for the bank loan on his Challenger was paid in person at a bank in Tupelo, Miss., some 300 miles north.

“My reaction to the NCAA was, ‘How the hell do you know anything about where I was at? How did you get the information to know that?’” Spencer said.

Moncrief’s attorney Jesse Mitchell immediately ended the meeting to find out. The NCAA has no subpoena power — it can’t demand that businesses, private individuals, or public bodies turn over documents. Yet somehow the enforcement staff was trying to pin Moncrief down by using his own financial records.

What the Moncriefs didn’t know was that Sheridan’s theory of Spencer being in two places in the same time had been debunked a month prior by the bank itself. Through a timeline pieced together by SB Nation, it seemed as if Sheridan was bluffing, trying to see if Spencer Moncrief would break.

“Except I did pay my note in Tupelo. And it was my car,” Spencer Moncrief told SB Nation. “I’m a grown man. I’m not a kid. I’m a grown man with a car that I let my brother drive sometimes. I have a degree; why can’t I afford a car?

“The entire process, I was like dang, because I drive a car, a nice car, I really felt like they were discriminating. Honestly. ‘He’s black, he can’t afford that car.’”

SB Nation has obtained an email dated Sept. 25, 2013, from a the general manager of a Gulfport, Miss., motel claiming to have turned over personal information of a customer to a NCAA representative who did not identify themselves:

To whom it may concern. My name is [REDACTED BY SB NATION] and I am the General Manager for Comfort Suites Hotel located in Gulfport, Ms. Recently I received a call from someone asking that all folio's for the month of February concerning Mr. Spencer Moncrief be faxed to him immediately. I quickly pulled up all past stays for that month and saw that this was a corporate account and faxed over the folios. This is not an uncommon request dealing with our corporate accounts. These request come through our hotel at least 4 to 5 times a day. At no time did the gentleman on the phone say that he was representing the NCAA or had any interest in investigating any wrong doings done by Mr. Moncrief. If in fact that he did, then I would have immediately terminated the call only after informing him that we would need a subpoena. The gentleman misrepresented himself to me just to acquire what he needed and I should have been more careful by asking more questions.

According to the NCAA's own document, Enforcement: Internal Operating Procedures, “In no case shall an enforcement staff member misrepresent his or her identity or title to an individual who may provide information relevant to an investigation." In obtaining the hotel folio, it appears that the investigator stopped just short of violating these procedures, simply because the NCAA does not prohibit not identifying himself at all.

When contacted by SB Nation regarding the email from Comfort Inn to his attorney, Spencer Moncrief agreed to speak on behalf of his family. Requests by SB Nation to speak with Donte Moncrief were denied by Moncrief family counsel Jesse Mitchell, an attorney in Jackson, Mississippi and former defensive lineman for the Rebels and Baltimore Ravens. Mitchell also declined to comment on any matter past the confirmation of statements by Spencer Moncrief to SB Nation, citing confidentiality.

Mitchell did confirm to SB Nation the validity of the email, sent to his offices after contacting the Comfort Suites in Gulfport, and that it was presented to the NCAA.

In addition, the folios requested by the NCAA, obtained by SB Nation, state multiple occupants in Spencer Moncrief’s room. Per Moncrief, when he would take a Crossmark job, the company would reserve him a hotel room and add the name of a coworker he’d be traveling with.

On September 27, 11 days after being ruled ineligible by the NCAA, Donte Moncrief was ruled eligible by the NCAA. The notice came just in time for Donte to drive to Tuscaloosa to play against Bama. No additional explanation for the reversal was given.

“Just like that, with no new information provided to the enforcement staff except that they broke the rules,” a source at the University of Mississippi said. “The NCAA got caught. And no one wanted it to get out, because this is the ‘new’ NCAA.”

The brief ineligibility ruling never made the news. Moncrief played out the 2013 season at Ole Miss and entered the NFL draft as a junior, landing with the Colts in the third round.

When asked why the family didn’t consider legal action against the NCAA, Spencer Moncrief said his brother’s wishes were to avoid public attention of any contact with NCAA enforcement before the NFL draft the following spring.

“Man, it was about getting into the NFL. I told him when it happened [clearance from the NCAA], ‘Bruh, you’re released. You’re OK. You can play in this football game.’ He didn’t want to do nothing while it was going on. He would just go to football practice and go home. He told me, ‘I don’t want this. Any of this. I didn’t do this excess shit they’re saying. I want to get out and make it for my family.’”

“The NCAA tells you nothing. They find you guilty first and then try to prove it. You have no power to defend yourself,” Moncrief said of the experience.

Beginning in April of 2013, Moncrief and his older brother and then-roommate Spencer would meet with the NCAA multiple times as Moncrief was being investigated for potentially receiving impermissible benefits.

Per multiple sources connected to the NCAA’s investigation and the University of Mississippi, the NCAA was acting on a photo of Donte driving the Challenger at a Tupelo, Miss., repair shop, and an anonymous statement that Moncrief had been seen driving the vehicle for days at a time on multiple occasions.

“Even if there was no other evidence ever provided, just a photo of the kid driving a car, that’s all they need to start an investigation,” a source in NCAA compliance in the Southeastern Conference said.

“They [NCAA investigators] don’t have to tell you why or what when they request to meet with you. And they don’t have to provide you with any evidence or information they have. It’s not court. So even if you have something that can clear an issue up right away — a receipt or a statement or anything — they want you in the dark when you meet.”

When Donte Moncrief arrived on campus in 2011 from his home in Raleigh, Miss., Spencer, who was already a graduate of the University of Southern Mississippi, came along.

“This is the God’s honest truth: I moved to Oxford because Houston Nutt was there and I wanted to try to move to Oxford to get a graduate assistant job. I thought I’d try because I got my degree in sports coaching education. It ended up not working out and it was cool, and I thought I’d go to grad school maybe. But I started working, and when you get an extra dollar you lose track of things because you’re stable,” Spencer said.

Moncrief got a job for a marketing company that created in-store promotions at retail outlets for various products across Mississippi. He purchased the used Challenger in September of 2012, financing a loan with First American National Bank that cost him $505 per month.

“I had a job. I was on a reset team for a company called Crossmark. Basically we went in and did product resets in stores like Kangaroo [gas stations]. We’d go in there and take all the different drinks out and redo them to put in newer items. If the company wanted a new item in a cooler or on a display, we’d do that.”

Spencer Moncrief said that when he frequently left Oxford for work travel, he’d leave his Challenger for Donte to drive. Once Donte informed Sheridan and the NCAA that the car was his brother’s, Spencer volunteered to speak with investigators to explain everything.

“Donte was worried ... my parents, for them ‘worried’ doesn’t even cover it. Donte is their baby boy. He said, ‘Just make sure I’m clear. I don’t want this on me.’ I told him ‘Bruh, we ain’t got nothing to hide.’ He was just mad, really mad, saying, ‘This is possibly my last year, and now out of the blue come these people,’” Spencer said.

Spencer Moncrief said that based on his questioning over multiple meetings in the summer of 2013, he believed that Sheridan’s goal was to prove he couldn’t afford the car by himself, and that in order to keep payments on the Challenger current, he had to be receiving outside help.

At the behest of his lawyer, Spencer turned over his loan information and registration on the vehicle to the NCAA. In addition, he provided copies of his checking account statements with Regions Bank. Digital copies were provided to SB Nation that show frequent direct deposits from his employer, which Spencer says were paid out per each reset job he completed.

Spencer said he was convinced that evidence would be enough for the NCAA. Instead, they demanded pay stubs. He provided them. Then a set of receipts. He provided them. He also turned over photos from various social media platforms to confirm his location on particular dates.

Then the NCAA requested information on every other deposit in his bank account. Spencer believes they were still convinced he was receiving money from a booster or other individuals to pay for the Challenger.

Sheridan also went after Moncrief’s side business of cutting hair. Moncrief told SB Nation he’s currently in school to become a barber, but in ‘13, he started cutting hair for extra cash. When he finished a cut, he’d put it in on social media in an effort to drum up more business.

“[Sheridan] wanted to know about the haircuts, so I told him. I told him about cutting hair. I cut the football team’s hair, I cut the basketball team’s hair, and I cut random folks’ hair. And he asked what evidence I had. I said look at my Instagram account; I know you have already.”

According to Moncrief, Sheridan requested a breakdown of his business. Moncrief told Sheridan that he usually charged $15 a haircut, and $20 and if he travelled to the client.

“Sometimes it’s 10 guys. Sometimes it’s 20,” Moncrief said he told Sheridan.

Moncrief said that Sheridan then told him that wasn’t enough money to cover the note for the Challenger.

“He said, ‘Because even 20 guys a month isn’t enough.’ So I asked him if he had any black friends, and he got this look, like shocked. Because in the African American community, you get a haircut every week, not once a month. It’s sometimes 20 guys a week. Some guys get a haircut every five days. They had a hard time believing that, so they wanted me to make a list, and everybody who got came and got their haircut would have to sign it,” Moncrief said.

“He went to the extreme of calling my friends and my girlfriend and asking for their Apple account information to look at their pictures and stuff. They said it was to see when I was in Oxford and when I wasn’t.”

“I guess he saw them [the friends] on my Twitter. I don’t know how he ended up getting their numbers, but he contacted them to see if I was in pictures, if I was with them at a particular time in Oxford.”

In 2013, Mike Webb was president of First American National Bank, based in Iuka, Miss., a small town about 60 miles from Tupelo in the far northeast corner of the state. On August 26, 2013, he got a call from a lending officer at First American National’s Tupelo branch.

“They told me someone from the NCAA in Indianapolis had called and wanted to come by to ask us questions about Spencer Moncrief the next day.”

Webb notified the bank’s counsel and, recognizing Spencer’s last name, called Ole Miss. The next day lawyers for First American and Ole Miss showed up, along with Webb. Sheridan was already on site.

“He said, ‘Because even 20 guys a month isn’t enough.’ So I asked him if he had any black friends, and he got this look, like shocked. Because in the African American community, you get a haircut every week, not once a month.” — Spencer Moncrief

“[Sheridan] was already at the building when we arrived,” Webb said. “He had a lineup of pictures of it. Looked like he pulled off of Facebook, or something like that. It was a couple of African American males, then a couple of white males. And he was going up to each teller asking, ‘Do you recognize any of these guys?’”

“Then our lending assistants are starting to get uneasy,” Webb said. “We’re not even a full service bank at this particular branch. They told him, ‘We’re loan office.’ So he asks again, ‘Have you ever seen any of these people make a payment?’ And of course the teller says, ‘We couldn’t tell you if we did.” And he says, “Well do you recognize any of them?” And the teller said, “Well if we did, we can’t tell you. Because if they bank here, we can’t do that.”

“Then Sheridan changes it up: ‘Have you ever seen any of these guys come in here and make payments at the bank?’ Because he’s assuming someone walking up in cash,” Webb said.

According to Webb, he, Sheridan, Ole Miss and counsel for First American sat down in a meeting room, where Sheridan asked about how loan payments are processed. Through Spencer Moncrief’s bank statement, a processed payment to First American appeared as March 7, 2013.

“And [Sheridan] says to us, ‘So how is it possible that this person Spencer Moncrief could make a payment here when I’ve got him on video footage of an ATM in Gulfport, Miss.?’” Webb said.

Webb said he explained that payments were often delayed by processing, and that deposits or payments (usually called “work” in banking) made at First American in Tupelo were sent up to another branch to be processed.

“His confusion was that the date stamped on every payment slip wasn’t the actual time the customer might be here making a payment. We tried to tell him that payments are often processed at different sites,” Webb said.

When asked if he recalled using an ATM during his 2013 trip to Gulfport, Spencer Moncrief told SB Nation that he did use one ATM, on site at the Comfort Suites. SB Nation confirmed with the Gulfport Comfort Suites that it has an on-site ATM.

The NCAA issued a statement to SB Nation on Wednesday, from Jon Duncan, NCAA vice president of enforcement:

While we cannot comment on the substance of the ongoing Ole Miss case, any allegation of misconduct by enforcement staff members during the investigation is simply false. The enforcement staff reviewed information about a potential violation in the case using NCAA member-approved procedures. After analyzing that information based on the standard set by the membership, the enforcement staff did not bring an allegation and that part of the investigation was closed.

When contacted for comment, the University of Mississippi declined.

Nothing the NCAA put in front of the Moncriefs ended up working as a smoking gun on Donte. According to sources involved in the investigation, the aggressive vetting of the Moncrief family and their subsequent response became an example of how thoroughly the NCAA would invest themselves in future inquiries in the overall Ole Miss investigation.

“When you hear the term ‘exemplary compliance’ Ole Miss has been using publicly to define their case with the NCAA, what that means is that they haven’t yet pushed back on anything. There hasn’t been a fight yet,” a source connected to the investigation told SB Nation.

“Keep in mind, this is a program that was 100 percent ready to defend Hugh Freeze before he was caught with the phone records and escorts. As far as the NCAA goes, Ole Miss was committed to defending the guy and their program,” the source said.

[traciedemars]

Pre-approvals...what they are, what they do, and how to get one! Upcoming Free (& non-promotional) Home Buyer Classes:

Thursday, July 13th , from 5pm-8pm (ish)       Marshall Community Center, conference room       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, July 22nd, from 12pm-3pm (ish)        Vancouver YMCA, conference room        11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave)

Saturday, July 29th , from 10am-1pm (ish)       Marshall Community Center, conference room       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                   ....we also have home seller classes available too...link on left on website                   Remember...with reservation...we will throw in lunch, or dinner!  :-D ~~~~~~~~~ Happy ...well, whatever day it is!  

What a week!  I started this email the day after the 4th, but then got caught up in Wedding stuff for my oldest daughter...who got married this past weekend, so honestly?  I have no idea what day it is!  The wedding was gorgeous...she was gorgeous, and I was TIRED!  :-D  However, it's a new week,  (I think?), and the weather is perfect.  Now that 'the wedding', is over the rest of us can concentrate on everything else!  :-D  So... what do you have going on?  Don't forget that the Clark County Fair is coming up starting August 4...and Chris and I will be there ALL 10 days!  Stop by and say, "hi" to us inside the exhibit hall....we are the 3rd booth to the right from the main doors.  

what are the steps to buying a home?  This is where it gets crazy because most of us just don't know....you just kind of 'fall into it'...  You meet up with someone, and like a whirlwind romance, next thing you know you are in a 30 year commitment called a mortgage loan!     So....if you are thinking about buying a home, what are your steps?  What do you need to know before you start?  

  Well, that is what the Free Home Buyer Education Classes are for!  ....that, and this weekly blog anyhow!  :-D  

The first step to buying a home is the home buyer education classes.     Did you know that more people will get education when buying a car than when buying a home? The classes are non-promotional, free, and meant to give home buyers a head start on the information they need to buying a home, and taking advantage of the state loan programs that are out there to HELP people buy a home!    Real Estate & Lending is all about 'verbiage' as we are 'taught' scripts to make things sound good for you, when in actuality...it may not be that great at all.  We do go over all of that, and try to make everything as clear as possible considering it starts off as mud.  :-)  As instructors of the classes we are volunteers, so while we HOPE that you will call us to help  you with your homebuying adventure, by no means do you have to.  :-) Buying a home, especially your first home, is such a big thing that sometimes it is hard to wait when we get the bug.  Buying a home is still the American dream, and gives us roots in a community.  It is the place where we raise our children, plant our gardens, paint our rooms, and show our personality.  A house isn't just a place of four walls and a door, but a home....and a place of dreams.  Knowing all of this as we do, when it comes to buying a home, patience isn't always our biggest virtue!    :-D  

  The second step in the home buying process is talking with a lender to  help you get pre-approved for a loan.     The reason why we say that talking to a lender is your second step is because while you don't go grocery shopping without knowing how much is in your bank account, you should never go looking at homes without knowing how much you can afford.  A lenders job is to pre-approve you for as much as they can, but that doesn't always mean that you can, or that you should, spend that much on purchasing a home.  We all have lives, and you don't want to be housepoor.  Make sure that you know your budget, and what is a comfortable amount for you to spend monthly on a mortgage.  Remember to make sure that you have enough for small things like eating out (ok....if you have my family it isn't a 'small' thing at all to eat out!), going to the movies, maybe going on a family trip....and let's not forget buying groceries and gas!  Also...as a homeowner, now you have other additional expenses and potential repairs to put aside for.  I always tell all my clients to put aside some money from every check into a 'special' account at a banking institution that you don't regularly frequent.  Maybe it is a credit union across town that is only open for 4 hours a day, but make sure you don't have a checkbook or a debit card for it.  It doesn't have to be a lot of money....maybe only $10-$20 per check, but this is your 'rainy day' fund...or really, the funds for any home repairs that will, eventually, come up.  Being a home owner does mean being prepared for home repairs that always happen at the worst possible time!  Home Warranties really are your best friend when buying a home...and yes, this is different than Homeowners Insurance (aka Hazard Insurance).  That will be a topic for another week. :-)  

  The rule of thumb though is to make sure that when you are looking for homes, after you get pre-approved, to make sure you are looking at homes with your buyers agent that you can afford, and not max out your budget!  

  Remember that not all lenders can access the downpayment assistance loans, so make sure that you are going through someone who can.  If you have any questions about that, please feel free to call, or email, Chris Berg @ Pinnacle Mortgage...503-320-0925 (he is local), and cberg@pcmloan.com .       When getting pre-approved, make sure to ask your lender if your pre-approval has already gone through the manual underwriters.  We are seeing more, and more people lately who, thinking they are pre-approved, go out and find a home, only to find out days before signing, that the manual underwriters are declining their loan!  This is terrible as this means that this family who have already packed up, given notice, and are ready to move....now have no loan, and therefore, no home!  I don't want that to happen to any of my clients, so as a buyers agent, when I am speaking with a lender, I always ask their lender if the buyers loan approval was sent to the manual underwriter, or if it is just a computer approval.  Having your pre-approval go through the manual underwriters, instead of just a computer approval, does take some more time, usually up to a week more, but in the end it is always better to be safe rather than sorry!  

  Please remember that your pre-approval is only good for 90 days, and yes, you will have to update it at the end of the process...usually when your file goes to underwriting for the final documents to sign.  Please continue to pay your bills (on time), please do not change work hours, please do not go out and buy appliances, do not get a personal loan for 'stuff for the house', do not go buy a car/truck/boat/etc.  If you have any questions, please talk with your lender first as all of these things can cause your loan to be declined...at the final step....which is awful for everyone.  Your pre-approval is NOT set in stone....  A pre-approval is a snap-shot of your 'current' financial situation, and if that changes...so can your pre-approval.  Your financial situation will be looked at by a myriad of different people, and scrutinized about 2-3 times by the underwriters...which are actually the people with the power.  Please remember to talk with your lender and real estate agent...we are here to help!  :-)  

  A pre-approval is good for a monthly mortgage payment amount...not a purchase price.  Your interest rate can not be locked in until about 30-45 days from closing/keys.  What this means is that the interest rate you are quoted at the time of pre-approval is merely a 'guesstimate'.  This part is always a bit strange, but your lender can't even start your actual loan process until you have a signed around contract on a home...signed (and agreed to) by the person with the legal authority to sell that home.  If interest rates go up in the process of buying your home, and your rate is not locked in, then your monthly mortgage payment will change...and so can your pre-approval.  

  Your buyers agent, and your lender should work together, and communicate with each other to help you through this process!  I know I say this all the time, but we work for YOU!  By working together we help you achieve your goal of your own home where you can kick your shoes off, turn on some football (ok, maybe that is just my house!), and relax!  A buyers agent and a lender should work together as a team, communicating with each other, and with you, every step of the way....that is what we are here for!  :-)  

I also asked Chris Berg for some information on this email... There are three forms of approvals that you will see when you purchase a home. Prequalification, preapproval, and approval.

A prequalification is not worth the paper it's printed on and most if not all sellers will not except a prequalification when you make an offer on a home. The reason for this is that a prequalification is basically just checking your credit but not verifying income or down payment or any of the other thousand things that can go wrong during the transaction.

A preapproval covers all the things they seller needs to see. Not only does it verify your credit but also verifies your income, tax returns, W-2s, down payment, employment and address history, and rent payments. A preapproval is what you need in order to make an offer on a home.

An approval is generally not achieved until you were under contract on a home. It verifies all the items in a preapproval but also includes the appraisal and preliminary title report on all borrowers and sellers.

In order to get a preapproval you need to bring your lender your last two years tax returns, W-2s, last 30 days pay stubs, ID, and two months bank statements if you have a down payment.

If you are seriously considering buying a home a preapproval, with most lenders, will not cost you any money and will allow you to deal with any issues well before you spend the money to make an offer on a home.

No animals were harmed during the writing of this email.

Thank you,   Chris Berg Mortgage Advisor with Pinnacle Capital Mortgage MLO-198082 503-320-0925 cell Cberg@pcmloan.com

Information is power,  and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would love to be able to help you.   If you have any questions, or comments please get a hold of me anytime.  You can call, text, email, or even facebook me.  Please remember that while I mean these emails/blogs to be helpful, and educational, I am still hoping that you will call, or email me as I would be honored to help you with your home buying, or home selling adventure!  :-)

   As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one.  Real Estate is not really about houses, it is about relationships.  Your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.   Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. ....disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... Upcoming Topics: What do I need to buy a home, Hiring a Realtor...questions to ask, What if I don't have a Down Payment? .....  &.... What does an Agent do for me?

Last Week:  Debt to Income Ratios... what is this?

Have a great day, and I will talk to you soon,   ;-D   Tracie DeMars   Real Estate broker     Re/Max - Van Mall   360/ 903-3504 cell   360/ 882-3600 fax   www.traciedemars.com   traciedemars@aol.com       “Interested in free and non promotional home education classes?  Go to www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”

"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."       - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

[avshop-blog]

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[legalseat]

Application Under SARFAESI: Supreme Court’s Liberal Approach

[Guest post by Richa Saraf, Assistant Legal Advisor at Vinod Kothari & Co.]

In the case of M.D. Frozen Foods Exports Pvt. Ltd. v. Hero Fincorp Ltd.,[1] the Supreme Court held that there was no illegality in a non-banking finance company (“NBFC”) invoking the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”) for recovery of loan arrears with respect to an account classified as non-performing asset (NPA) before the NBFC was notified under the Act. It also clarified that an NBFC is entitled to initiate both arbitration proceedings and SARFAESI proceedings with respect to a loan account, and that the ‘doctrine of election’ was not attracted in such a scenario. There was a division of judicial opinions among the High Courts: while the Full Bench of the Orissa High Court, as also the Delhi High Court and the Allahabad High Court, have taken a view favourable in terms of the simultaneous legal processes under the SARFAESI Act and arbitration recovery proceedings, the Andhra Pradesh High Court has taken a divergent view. After careful scrutiny of the rival contentions and the judicial precedents cited, the Supreme Court has finally settled the law on the point.

Background and Facts

M.D. Frozen Foods Exports Pvt. Ltd. (the appellant) borrowed monies for their business against security of immovable properties by the creation of an equitable mortgage by deposit of title documents. The account of M.D. Frozen was classified as a NPA.

The agreement between the parties contained an arbitration clause, and thus the matter went to arbitration on Hero Fincorp Ltd. (the respondent) invoking the arbitration clause. However, prior to this invocation, a notification was issued in exercise of powers conferred under section 2(1)(m)(iv) read with section 31A of the SARFAESI Act, wherein Hero Fincorp was notified as a financial institution (the “Notification”).

In view of the aforesaid Notification, Hero Fincorp issued a notice under section 13(2) of the SARFAESI Act. The statement of claim was filed by Hero Fincorp before the arbitrator and interim orders were granted by the arbitrator restraining M.D. Frozen from creating any third party interest over the properties. The legality of the arbitration proceedings was challenged by M.D. Frozen in view of the invocation of SARFAESI Act. After the challenge was repelled both by the arbitrator and later by the Delhi High Court, the matter came up before the Supreme Court.

Issues Resolved

1. Whether resort can be had to Section 13 of the SARFAESI Act in respect of debts which have arisen out of a loan agreement/mortgage created prior to the application of the SARFAESI Act to the lender?

The SARFAESI Act was brought into force to solve the problem of recovery of large debts in the form of NPAs. Thus, the very rationale for the Act to be brought into force was to provide an expeditious procedure where there was a security interest created in favour of the lender. It certainly did not apply retrospectively from the date when it came into force. The question is whether the Act is applicable to the lender at a subsequent date, and thereby allowing the lender to utilize its provisions with regards to a past debt, would make any difference to this principle. The Supreme Court answered in negative. The Act applies to all the claims which would be alive at the time when it was brought into force. Thus, as against Hero Fincorp or other NBFCs, it would be applicable similarly from the date when it was so made applicable to them.

In Sarthak Builders Pvt. Ltd. v. Orissa Rural Development Corporation Ltd.[2] the Supreme Court has succinctly set out this aspect. No doubt, till the time the lender was not a ‘financial institution’ within the meaning of section 2(1)(m)(iv) of the SARFAESI Act, it was not a ‘secured creditor’ as defined under section 2(1)(zd) of the SARFAESI Act, and thus could not have invoked the provisions of the SARFAESI Act. However, the right to proceed under the SARFAESI Act accrued once the Notification was issued.

The case of Unique Engineering Works v. Union of India[3] dealt with the issue of retrospectivity and retroactivity. In case of retroactivity, the Parliament takes note of the existing conditions and promulgates the remedial measures to rectify those conditions. In fact the SARFAESI Act, in our view, was to remedy such a position and provide a measure against secured interests. The scheme of the SARFAESI Act is really to provide a procedural remedy against security interest already created. Therefore, an existing borrower, who had been granted financial assistance, was covered under section 2(f) of the said Act as a ‘borrower’. Not only this expression, but the definition clauses dealing with ‘debt securities’, ‘financial assistance’, ‘financial assets’, etc., clearly convey the legislative intent that the SARFAESI Act applies to all existing agreements irrespective of whether the lender was a notified ‘financial institution’ on the date of the execution of the agreement with the borrower. The scheme of the SARFAESI Act sets out an expeditious, procedural method, enabling the bank to take possession of the property for non-payment of dues, without intervention of the court. The mere fact that a more expeditious remedy is provided under the SARFAESI Act does not mean that it is substantive in character or has created an altogether new right; if this view is accepted, it would imply that there is an inherent right to delay the enforcement against the security interest!

In a similar vein, there are observations made in the case of In re Athlumney Ex parte Wilson[4], where the question posed before the Queen’s Division Bench was whether section 23 of the Bankruptcy Act, 1890 was retrospective in its operation. In the aforementioned context, Wright, J., speaking for the bench, illuminatingly opined:

Perhaps no rule of construction is more firmly established than this – that a retrospective operation is not to be given to a statute so as to impair an existing right or obligation, otherwise than as regards matter of procedure, unless that effect cannot be avoided without doing violence to the language of the enactment. If the enactment is expressed in language which is fairly capable of either interpretation, it ought to be construed as prospective only… it is a general rule that when the Legislature alters the rights of parties by taking away or conferring any right of action, its enactments, unless in express terms they apply to pending actions, do not affect them. It is said that there is one exception to that rule, namely, that, where enactments merely affect procedure and do not extend to rights of action, they have been held to apply to existing rights, and it is suggested here that the alteration made by this section is within that exception.

2. Whether the lender can invoke the SARFAESI Act provision where its notification as financial institution under section 2(1)(m) has been issued after the account became an NPA under section 2(1)(o) of the said Act?

The Supreme Court held that the date on which a debt is declared as an NPA would have no impact. The provisions of the SARFAESI Act would become applicable qua all debts owing and live when the Act becomes applicable, provided the following factors existed:

– Existence of a present actionable debt;

– Status of the person invoking the jurisdiction is that of a secured creditor;

– Assets have been secured in satisfaction of the debt; and

– That the debtor/borrower should have been declared an NPA.

3. Whether the arbitration proceedings can be carried on along with the SARFAESI proceedings simultaneously?

A claim by a bank or a financial institution, before SARFAESI Act and Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (“RDDB Act”) came into force, would ordinarily have been filed in the civil court having the pecuniary jurisdiction. The setting up of the Debt Recovery Tribunal under the RDDB Act resulted in this specialised tribunal entertaining such claims by banks and financial institutions. In fact, suits from the civil jurisdiction were transferred to the Debt Recovery Tribunal. The Tribunal was, thus, an alternative to a civil court recovery proceeding. Upon the SARFAESI Act being brought into force seeking to recover debts against security interest, a question was raised whether parallel proceedings could go on under the RDDB Act and the SARFAESI Act. This issue was clearly answered in favour of such simultaneous proceedings in Transcore v. Union of India & Anr.[5] The relevant extract is reproduced below:

According to American Jurisprudence, 2d, Vol. 25, p. 652, if in truth there is only one remedy, then the doctrine of election does not apply. In the present case, as stated above, the NPA Act is an additional remedy to the DRT Act. Together they constitute one remedy and, therefore, the doctrine of election does not apply. Even according to Snell’s Principles of Equity (31st Edn., p. 119), the doctrine of election of remedies is applicable only when there are two or more co-existent remedies available to the litigants at the time of election which are repugnant and inconsistent. In any event, there is no repugnancy nor inconsistency between the two remedies, therefore, the doctrine of election has no application.

A later judgment in Mathew Varghese v. M. Amritha Kumar[6] also discussed this issue in the following terms:

A close reading of Section 37 shows that the provisions of the SARFAESI Act or the Rules framed thereunder will be in addition to the provisions of the RDDB Act. Section 35 of the SARFAESI Act states that the provisions of the SARFAESI Act will have overriding effect notwithstanding anything inconsistent contained in any other law for the time being in force. Therefore, reading Sections 35 and 37 together, it will have to be held that in the event of any of the provisions of the RDDB Act not being inconsistent with the provisions of the SARFAESI Act, the application of both the Acts, namely, the SARFAESI Act and the RDDB Act, would be complementary to each other.

A reading of section 37 discloses that the application of the SARFAESI Act will be in addition to and not in derogation of the provisions of the RDDB Act. In other words, it will not in any way nullify or annul or impair the effect of the provisions of the RDDB Act. The Supreme Court was also pleased to fortify the above statement of law as the heading of the said section also makes the position clear that application of other laws are not barred. The effect of section 37 would therefore be that in addition to the provisions contained under the SARFAESI Act, in respect of proceedings initiated under the said Act, it will be in order for a party to fall back upon the provisions of the other legislation mentioned in section 37. These observations thus leave no manner of doubt, and the issue is no more res integra, especially keeping in mind the provisions of sections 35 and 37 of the SARFAESI Act, which read as under:

35. The provisions of this Act to override other laws. – The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law.

37. Application of other laws not barred. – The provisions of this Act or the rules made thereunder shall be in addition to, and not in derogation of, the Companies Act, 1956 (1 of 1956), the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993) or any other law for the time being in force.”

The aforesaid two Acts are thus complementary to each other, and it is not a case of election of remedy. The only twist in the present case is that, instead of the recovery process under the RDDB Act, the concern lies with regard to the arbitration proceeding. It is trite to say that arbitration is an alternative to civil proceedings. In fact, when a question was raised as to whether the matters which came within the scope and jurisdiction of the Debt Recovery Tribunal under the RDDB Act could still be referred to arbitration when both parties have incorporated such a clause, the answer was given in the affirmative.[7] That being the position, the appellants, M.D. Frozen, can hardly be permitted to contend that the initiation of arbitration proceedings would, in any manner, prejudice their rights to seek relief under the SARFAESI Act. In HDFC Bank Limited v. Satpal Singh Bakshi,[8] it was opined that an arbitration is an alternative to the RDDB Act. The jurisdiction of the civil court is barred for matters covered by the RDDB Act, but the parties still have freedom to choose a forum, alternate to, and in place of the regular courts or judicial system for deciding their inter se disputes. All disputes relating to the ‘right in personam’ are arbitrable and therefore the choice is given to the parties to choose this alternative forum. A claim of money by a bank or a financial institution cannot be treated as a ‘right in rem’, which has an inherent public interest and would, thus, not be arbitrable.

The aforesaid is not a case of election of remedies since the alternatives are between a civil court, arbitral tribunal or a Debt Recovery Tribunal constituted under the RDDB Act. In so far as that election is concerned, the mode of settlement of disputes to an arbitral tribunal has been elected. The provisions of the SARFAESI Act are thus a remedy in addition to the provisions of the Arbitration Act. In Transcore v. Union of India[9] it was clearly observed that the SARFAESI Act was enacted to regulate securitisation and reconstruction of financial assets and enforcement of security interest and for matters connected therewith. Liquidation of secured interest through a more expeditious procedure is what has been envisaged under the SARFAESI Act, and the two Acts are cumulative remedies to the secured creditors.

SARFAESI proceedings are in the nature of enforcement proceedings, while arbitration is an adjudicatory process. In the event that the secured assets are insufficient to satisfy the debts, the secured creditor can proceed against other assets in execution against the debtor, after determination of the pending outstanding amount by a competent forum.

Conclusion

The Supreme Court held that the principle of retrospective operation of law was not applicable in the instant case. There was no retrospective operation involved, because as on the date of Notification, the claim was subsisting and operative. Thus, the provisions of the SARFAESI Act would become applicable to all the debts owing and existing when the Act became applicable to the lender. On perusal of the above, it can further be noted that the Supreme Court unequivocally held that the judgments in Sarthak Builders Pvt. Ltd. v. Orissa Rural Development Corporation Ltd.[10], HDFC Bank Limited v. Satpal Singh Bakshi and Pradeep Kumar Gupta v. State of U.P[11] lay down the correct proposition of law and the view expressed in M/s. Deccan Chronicles Holdings Ltd. v. Union of India[12] following the overruled decision in Subash Chandra Panda v. State of Orissa[13] does not set forth the correct position in law. SARFAESI proceedings and arbitration proceedings, thus, can go hand in hand.

– Richa Saraf

[1] Civil Appeal No. 15147 OF 2017 decided on September 21 , 2017.

[2] 2014 SCC OnLine Ori 75.

[3] II 2004 BC 241 (DB).

[4] [1898] 2 Q.B. 547.

[5] (2008) 1 SCC 125.

[6] (2014) 5 SCC 610.

[7] HDFC Bank Limited v. Satpal Singh Bakshi, 2013 (134) DRJ 566.

[8] 2013 (134) DRJ 566.

[9] (2008) 1 SCC 125

[10] 2014 SCC OnLine Ori 75

[11] AIR 2010 All 3

[12] AIR 2014 Andhra Pradesh 78

[13] AIR 2008 Ori 88

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[legalseat]

Application Under SARFAESI: Supreme Court’s Liberal Approach

[Guest post by Richa Saraf, Assistant Legal Advisor at Vinod Kothari & Co.]

In the case of M.D. Frozen Foods Exports Pvt. Ltd. v. Hero Fincorp Ltd.,[1] the Supreme Court held that there was no illegality in a non-banking finance company (“NBFC”) invoking the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”) for recovery of loan arrears with respect to an account classified as non-performing asset (NPA) before the NBFC was notified under the Act. It also clarified that an NBFC is entitled to initiate both arbitration proceedings and SARFAESI proceedings with respect to a loan account, and that the ‘doctrine of election’ was not attracted in such a scenario. There was a division of judicial opinions among the High Courts: while the Full Bench of the Orissa High Court, as also the Delhi High Court and the Allahabad High Court, have taken a view favourable in terms of the simultaneous legal processes under the SARFAESI Act and arbitration recovery proceedings, the Andhra Pradesh High Court has taken a divergent view. After careful scrutiny of the rival contentions and the judicial precedents cited, the Supreme Court has finally settled the law on the point.

Background and Facts

M.D. Frozen Foods Exports Pvt. Ltd. (the appellant) borrowed monies for their business against security of immovable properties by the creation of an equitable mortgage by deposit of title documents. The account of M.D. Frozen was classified as a NPA.

The agreement between the parties contained an arbitration clause, and thus the matter went to arbitration on Hero Fincorp Ltd. (the respondent) invoking the arbitration clause. However, prior to this invocation, a notification was issued in exercise of powers conferred under section 2(1)(m)(iv) read with section 31A of the SARFAESI Act, wherein Hero Fincorp was notified as a financial institution (the “Notification”).

In view of the aforesaid Notification, Hero Fincorp issued a notice under section 13(2) of the SARFAESI Act. The statement of claim was filed by Hero Fincorp before the arbitrator and interim orders were granted by the arbitrator restraining M.D. Frozen from creating any third party interest over the properties. The legality of the arbitration proceedings was challenged by M.D. Frozen in view of the invocation of SARFAESI Act. After the challenge was repelled both by the arbitrator and later by the Delhi High Court, the matter came up before the Supreme Court.

Issues Resolved

1. Whether resort can be had to Section 13 of the SARFAESI Act in respect of debts which have arisen out of a loan agreement/mortgage created prior to the application of the SARFAESI Act to the lender?

The SARFAESI Act was brought into force to solve the problem of recovery of large debts in the form of NPAs. Thus, the very rationale for the Act to be brought into force was to provide an expeditious procedure where there was a security interest created in favour of the lender. It certainly did not apply retrospectively from the date when it came into force. The question is whether the Act is applicable to the lender at a subsequent date, and thereby allowing the lender to utilize its provisions with regards to a past debt, would make any difference to this principle. The Supreme Court answered in negative. The Act applies to all the claims which would be alive at the time when it was brought into force. Thus, as against Hero Fincorp or other NBFCs, it would be applicable similarly from the date when it was so made applicable to them.

In Sarthak Builders Pvt. Ltd. v. Orissa Rural Development Corporation Ltd.[2] the Supreme Court has succinctly set out this aspect. No doubt, till the time the lender was not a ‘financial institution’ within the meaning of section 2(1)(m)(iv) of the SARFAESI Act, it was not a ‘secured creditor’ as defined under section 2(1)(zd) of the SARFAESI Act, and thus could not have invoked the provisions of the SARFAESI Act. However, the right to proceed under the SARFAESI Act accrued once the Notification was issued.

The case of Unique Engineering Works v. Union of India[3] dealt with the issue of retrospectivity and retroactivity. In case of retroactivity, the Parliament takes note of the existing conditions and promulgates the remedial measures to rectify those conditions. In fact the SARFAESI Act, in our view, was to remedy such a position and provide a measure against secured interests. The scheme of the SARFAESI Act is really to provide a procedural remedy against security interest already created. Therefore, an existing borrower, who had been granted financial assistance, was covered under section 2(f) of the said Act as a ‘borrower’. Not only this expression, but the definition clauses dealing with ‘debt securities’, ‘financial assistance’, ‘financial assets’, etc., clearly convey the legislative intent that the SARFAESI Act applies to all existing agreements irrespective of whether the lender was a notified ‘financial institution’ on the date of the execution of the agreement with the borrower. The scheme of the SARFAESI Act sets out an expeditious, procedural method, enabling the bank to take possession of the property for non-payment of dues, without intervention of the court. The mere fact that a more expeditious remedy is provided under the SARFAESI Act does not mean that it is substantive in character or has created an altogether new right; if this view is accepted, it would imply that there is an inherent right to delay the enforcement against the security interest!

In a similar vein, there are observations made in the case of In re Athlumney Ex parte Wilson[4], where the question posed before the Queen’s Division Bench was whether section 23 of the Bankruptcy Act, 1890 was retrospective in its operation. In the aforementioned context, Wright, J., speaking for the bench, illuminatingly opined:

Perhaps no rule of construction is more firmly established than this – that a retrospective operation is not to be given to a statute so as to impair an existing right or obligation, otherwise than as regards matter of procedure, unless that effect cannot be avoided without doing violence to the language of the enactment. If the enactment is expressed in language which is fairly capable of either interpretation, it ought to be construed as prospective only… it is a general rule that when the Legislature alters the rights of parties by taking away or conferring any right of action, its enactments, unless in express terms they apply to pending actions, do not affect them. It is said that there is one exception to that rule, namely, that, where enactments merely affect procedure and do not extend to rights of action, they have been held to apply to existing rights, and it is suggested here that the alteration made by this section is within that exception.

2. Whether the lender can invoke the SARFAESI Act provision where its notification as financial institution under section 2(1)(m) has been issued after the account became an NPA under section 2(1)(o) of the said Act?

The Supreme Court held that the date on which a debt is declared as an NPA would have no impact. The provisions of the SARFAESI Act would become applicable qua all debts owing and live when the Act becomes applicable, provided the following factors existed:

– Existence of a present actionable debt;

– Status of the person invoking the jurisdiction is that of a secured creditor;

– Assets have been secured in satisfaction of the debt; and

– That the debtor/borrower should have been declared an NPA.

3. Whether the arbitration proceedings can be carried on along with the SARFAESI proceedings simultaneously?

A claim by a bank or a financial institution, before SARFAESI Act and Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (“RDDB Act”) came into force, would ordinarily have been filed in the civil court having the pecuniary jurisdiction. The setting up of the Debt Recovery Tribunal under the RDDB Act resulted in this specialised tribunal entertaining such claims by banks and financial institutions. In fact, suits from the civil jurisdiction were transferred to the Debt Recovery Tribunal. The Tribunal was, thus, an alternative to a civil court recovery proceeding. Upon the SARFAESI Act being brought into force seeking to recover debts against security interest, a question was raised whether parallel proceedings could go on under the RDDB Act and the SARFAESI Act. This issue was clearly answered in favour of such simultaneous proceedings in Transcore v. Union of India & Anr.[5] The relevant extract is reproduced below:

According to American Jurisprudence, 2d, Vol. 25, p. 652, if in truth there is only one remedy, then the doctrine of election does not apply. In the present case, as stated above, the NPA Act is an additional remedy to the DRT Act. Together they constitute one remedy and, therefore, the doctrine of election does not apply. Even according to Snell’s Principles of Equity (31st Edn., p. 119), the doctrine of election of remedies is applicable only when there are two or more co-existent remedies available to the litigants at the time of election which are repugnant and inconsistent. In any event, there is no repugnancy nor inconsistency between the two remedies, therefore, the doctrine of election has no application.

A later judgment in Mathew Varghese v. M. Amritha Kumar[6] also discussed this issue in the following terms:

A close reading of Section 37 shows that the provisions of the SARFAESI Act or the Rules framed thereunder will be in addition to the provisions of the RDDB Act. Section 35 of the SARFAESI Act states that the provisions of the SARFAESI Act will have overriding effect notwithstanding anything inconsistent contained in any other law for the time being in force. Therefore, reading Sections 35 and 37 together, it will have to be held that in the event of any of the provisions of the RDDB Act not being inconsistent with the provisions of the SARFAESI Act, the application of both the Acts, namely, the SARFAESI Act and the RDDB Act, would be complementary to each other.

A reading of section 37 discloses that the application of the SARFAESI Act will be in addition to and not in derogation of the provisions of the RDDB Act. In other words, it will not in any way nullify or annul or impair the effect of the provisions of the RDDB Act. The Supreme Court was also pleased to fortify the above statement of law as the heading of the said section also makes the position clear that application of other laws are not barred. The effect of section 37 would therefore be that in addition to the provisions contained under the SARFAESI Act, in respect of proceedings initiated under the said Act, it will be in order for a party to fall back upon the provisions of the other legislation mentioned in section 37. These observations thus leave no manner of doubt, and the issue is no more res integra, especially keeping in mind the provisions of sections 35 and 37 of the SARFAESI Act, which read as under:

35. The provisions of this Act to override other laws. – The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law.

37. Application of other laws not barred. – The provisions of this Act or the rules made thereunder shall be in addition to, and not in derogation of, the Companies Act, 1956 (1 of 1956), the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993) or any other law for the time being in force.”

The aforesaid two Acts are thus complementary to each other, and it is not a case of election of remedy. The only twist in the present case is that, instead of the recovery process under the RDDB Act, the concern lies with regard to the arbitration proceeding. It is trite to say that arbitration is an alternative to civil proceedings. In fact, when a question was raised as to whether the matters which came within the scope and jurisdiction of the Debt Recovery Tribunal under the RDDB Act could still be referred to arbitration when both parties have incorporated such a clause, the answer was given in the affirmative.[7] That being the position, the appellants, M.D. Frozen, can hardly be permitted to contend that the initiation of arbitration proceedings would, in any manner, prejudice their rights to seek relief under the SARFAESI Act. In HDFC Bank Limited v. Satpal Singh Bakshi,[8] it was opined that an arbitration is an alternative to the RDDB Act. The jurisdiction of the civil court is barred for matters covered by the RDDB Act, but the parties still have freedom to choose a forum, alternate to, and in place of the regular courts or judicial system for deciding their inter se disputes. All disputes relating to the ‘right in personam’ are arbitrable and therefore the choice is given to the parties to choose this alternative forum. A claim of money by a bank or a financial institution cannot be treated as a ‘right in rem’, which has an inherent public interest and would, thus, not be arbitrable.

The aforesaid is not a case of election of remedies since the alternatives are between a civil court, arbitral tribunal or a Debt Recovery Tribunal constituted under the RDDB Act. In so far as that election is concerned, the mode of settlement of disputes to an arbitral tribunal has been elected. The provisions of the SARFAESI Act are thus a remedy in addition to the provisions of the Arbitration Act. In Transcore v. Union of India[9] it was clearly observed that the SARFAESI Act was enacted to regulate securitisation and reconstruction of financial assets and enforcement of security interest and for matters connected therewith. Liquidation of secured interest through a more expeditious procedure is what has been envisaged under the SARFAESI Act, and the two Acts are cumulative remedies to the secured creditors.

SARFAESI proceedings are in the nature of enforcement proceedings, while arbitration is an adjudicatory process. In the event that the secured assets are insufficient to satisfy the debts, the secured creditor can proceed against other assets in execution against the debtor, after determination of the pending outstanding amount by a competent forum.

Conclusion

The Supreme Court held that the principle of retrospective operation of law was not applicable in the instant case. There was no retrospective operation involved, because as on the date of Notification, the claim was subsisting and operative. Thus, the provisions of the SARFAESI Act would become applicable to all the debts owing and existing when the Act became applicable to the lender. On perusal of the above, it can further be noted that the Supreme Court unequivocally held that the judgments in Sarthak Builders Pvt. Ltd. v. Orissa Rural Development Corporation Ltd.[10], HDFC Bank Limited v. Satpal Singh Bakshi and Pradeep Kumar Gupta v. State of U.P[11] lay down the correct proposition of law and the view expressed in M/s. Deccan Chronicles Holdings Ltd. v. Union of India[12] following the overruled decision in Subash Chandra Panda v. State of Orissa[13] does not set forth the correct position in law. SARFAESI proceedings and arbitration proceedings, thus, can go hand in hand.

– Richa Saraf

[1] Civil Appeal No. 15147 OF 2017 decided on September 21 , 2017.

[2] 2014 SCC OnLine Ori 75.

[3] II 2004 BC 241 (DB).

[4] [1898] 2 Q.B. 547.

[5] (2008) 1 SCC 125.

[6] (2014) 5 SCC 610.

[7] HDFC Bank Limited v. Satpal Singh Bakshi, 2013 (134) DRJ 566.

[8] 2013 (134) DRJ 566.

[9] (2008) 1 SCC 125

[10] 2014 SCC OnLine Ori 75

[11] AIR 2010 All 3

[12] AIR 2014 Andhra Pradesh 78

[13] AIR 2008 Ori 88

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