#sh13

[prettylittledevil13]

REINO PPG ‼️‼️‼️ iktr🙂‍↕️

these are the cats i know and love

[pizzaprompts]

Scar Headcanon Prompts

A series of prompted asks to get you thinking about your muse's scars, what they look like and how they impact their life!

Slight TW for self-harm, injury, abuse, and a few other associated scar-related things.

~~~~~~~🍕~~~~~~~

SH1 - Does your muse have any scars? How many? Are they aware of all of their scars? Do they have marks on their body that they assume are scars that are not?

SH2 - What kinds of scars does your muse have? Fine line scars? Raised scars? Burn scars? Pitted scars?

SH3 - Does your muse have any scars from surgeries? What did they receive surgery for? Were they optional surgery, cosmetic, emergency? Was the surgery something they consented to? How healed are the scars now?

SH4 - Does your muse have any scars from fighting? Were they caused by a specific type of weapon? How severe were the injuries when they acquired them, and what kind of treatment did they require?

SH5 - Does your muse have any scars that impact them to this day? Scars that inhibit mobility, still cause them pain, are so visible as to impact how they feel about themselves or how others treat them? How old are these scars / how long have they been dealing with this impact?

SH6 - Does your muse have any scars with unusual properties? A unique shape or color? A scar they can't explain? A scar of a magical nature, or that links them to someone else (a soulmate/sibling/master/lover)?

SH7 - Does your muse have any scars from former body modification? From old piercings they no longer wear, from scarification, or branding, or perhaps where they otherwise attempted to remove a mark or tattoo?

SH8 - What are your muse's most visible scars? Are they visible because the scar is still fresh and vivid, or because they're located somewhere where anyone can see them?

SH9 - Which scars are the hardest for your muse to talk about? Is it because of a traumatic experience? A loss of memory? A fear of judgement? Is there a situation in which they'd be able to open up about them?

SH10 - Does your muse have any scars that have healed enough to be practically invisible, but that your muse feels so strongly about that they'll never forget the location or circumstances of their acquisition? What makes these scars so meaningful? Are they recollected fondly, or with fear, distaste, or hatred?

SH11 - Does your muse have any scars that are, in their opinion, funny or silly to talk about? Scars they got showing off for a crush, or from a prank, or from doing something really ridiculous?

SH12 - Does your muse have any scars that they talk about a lot? Maybe a scar they lie about to seem more mysterious or dashing, or dangerous? A scar they tell the truth about because the story is entertaining? A scar they talk about as a way of flirting?

SH13 - Are any of your muse's scars a byproduct of their job? If so, was this because of neglegence on their part or on the part of others? Was this something they were compensated for in some way?

SH14 - Does your muse have any scars that are self-inflicted? Were they intentional, or unintentional? Does your muse struggle with self-harm, or do they use this as a form of self-expression?

SH15 - Does your muse have any scars that are due to abuse? If so, were these at the hands of a family member? A lover? A friend? Is that person/Are those people still in their life?

SH16 - Does your muse have any scars that make them look objectively hotter rather than detracting from their appearance? Do they have any scars that make them feel more attractive in some way, regardless of objective opinions?

SH17 - Does your muse have any scars that they're fine to talk about, but other people seem uncomfortable talking about or avoid discussing? Is this because it's related to a potential disability, or a traumatic event? Is this a scar they used to be uncomfortable talking about, but got over feeling that way?

SH18 - Does your muse have any scars that they got during their childhood or teenage years? How severe might they have been? How visible are they now?

SH19 - Does your muse have any scars that they actively do their best to conceal? Something they use makeup, clothing, accessories, or magic to hide? How effective at concealing these scars are they? How would they respond to someone discovering one of these scars?

SH20 - How does your muse feel about their own scars in comparison to the scars of others? Is it different depending on which of their own scars they're considering? Is it different depending on what person's scars are showing, or how those scars were acquired by that person? Do they find scars on other people sexy, or sad, or off-putting?

[mozeki]

Dr Ofweneke and YY roast Oga Obinna for account balance blunder

As the competition to see who can flaunt the most money on social media continues, media star Oga Obinna has been chastised for omitting a decimal in his account balance announcement.In response to comedian Eric Omondi’s Sh13 million cash flaunt on social media, Obinna, born Thomas Maghana, published a screenshot of his bank account amount. However, he forgot to change the balance before making…

[reinaldoteles]

. . Shidosha Black Titanium para cortes precisos e geométricos. . . Desenvolvido pela Leader Italy e produzido no Japão. . . Aço Cobalto com revestimento em Titanium. Disponível em 5,5' - 6,0' - 7,0' . . #Shidosha #sh13 #black #titanium #convex #madeinjapan #barbershop #hairstyle #design #designinspiration #slidecuts #haircut #barber #Shidosha #pointcut #points #madeinjapan #jappanese #barbiere #barbieriitaliani #barba #acconciature #acconciatore #accessories #acconciatureraccolte (em Reinaldo Teles) https://www.instagram.com/p/B5ROa6rnZZr/?igshid=egbv7u305vh6

[templepurohit]

Bhagvad Gita : Chapter - 2 Shloka - 13 - Birth and Death a Physical change "ओम नमो भगवते वासुदेवायः" After explaining the continuity of life(Sh#12), Bhagvan Shri Krishna explained to Arjuna, the secret of birth and death. Merciful Supreme Lord explained that birth and death is nothing but a physical change. Physical change is a continuous phenomenon which takes place in every physical substance all the time. Even the very body by which human identify himself is not same. It changes from childhood to adulthood to old age. In same fashion soul changes from one body to other, called as birth and death. Ch2:Sh13 dehino 'smin yatha dehe kaumaram yauvanam jara tatha dehantara-praptir dhiras tatra na muhyati As our body continuously passes from childhood to youth to old age, the soul similarly passes into another body after death. The physical change in the body doesn’t effect the soul. Wise men do not get bemused by such a change. As the embodied soul continuously passes, in this body, from boyhood to youth to old age, the soul similarly passes into another body at death. A self-realized soul is not bewildered by such a change. जीवन की अनन्तता को बताने के बाद भगवान श्री कृष्ण ने अर्जुन को जन्म और मृत्यु का रहस्य बताया | भगवान ने यह स्पस्ट किया कि जन्म और मृत्यु और कुछ नहीं बल्कि एक भौतिक परिवर्तन है| यह परिवर्तन तो इस जगत का शाश्वत नियम है और हर पल होता ही रहता है| मनुष्य का शरीर भी कभी एक समान नहीं रहता| जैसे वाल्यावस्था से युवावस्था और फिर वृद्धावस्था में अवस्थाओं के परिवर्तन होता है वैसे ही एक शरीर से दूसरे शरीर में परिवर्तन होता है, जिसे जन्म और मृत्यु कहा जाता है| Ch2:Sh13 देहिनोऽस्मिन्यथा देहे कौमारं यौवनं जरा । तथा देहान्तरप्राप्तिर्धीरस्तत्र न मुह्यति ॥ जैसे शरीर में बाल्यावस्था से युवावस्था और युवावस्था से वृद्धावस्था में परिवर्तन होता है वैसे ही आत्मा के लिए एक शरीर से दूसरे शरीर में परिवर्तन होता है| धीर पुरुष(धैर्यवान मनुष्य) इस परिवर्तन से विचलित नहीं होते| https://ift.tt/3xFpKa6

[dominikswtor]

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Heavy riffin' in drop D with the dimebucker 😍🎸 #metal #sh13 #seymourduncan #dimebucker #metalhead #doommetal #thrashmetal #yamaha #pacifica112 #original #awesome #amazing #happy #love #manutd #manutdfan #dropd #riff #heavy #heavyriffs

[mediaronity]

High prices of goods blamed for costly dollar, supply disruptions

High prices of goods blamed for costly dollar, supply disruptions

Retailers have either reduced their size or increased in prices. [iStock] Gone are the days when you would go to your local shop or supermarket with the exact amount of cash for a particular item you intend to buy. Today, if our mothers were to send us to shops expecting a specific amount of change after buying a particular item, they would be shocked. What cost Sh10 last month now goes for Sh13…

[grinduniverse]

Reposted from @zozi_silveira @panteraofficial | A New Level Estudando esse solo do @dimebagdarrell com o @gutyrodrigues na ultima aula... Que sensação absurda conseguir tocar isso. Tá errado? Tá. Tem ódio? Com certeza! AH, não posso deixar de mencionar sempre a oportunidade que o @leosaba me dá em estar portando essa guitarra maravilhosa e emblemática! Vou devolver algum dia? Não sei... hahahahahaha Gear usado: @washburn.authentic Funky Munky @seymourduncanpickups Dimebucker (SH13) @engl_amplification Savage 120 MKI @engl_amplification Pro Vintage 4x12 @jimdunlopusa @zakkwyldebls Wah @boss_brasil DD3 #guitar #pantera #dimebag #washburn #anewlevel #dimebaglives #guitarsolo #guitarrista #solodeguitarra https://www.instagram.com/p/Cdb-d6QldNe63HK7_hJGW9guvXS_G4oC94KoCY0/?igshid=NGJjMDIxMWI=

[briefnewschannel]

State pushes to raise debt ceiling to Sh13 trillion in chaotic session

State pushes to raise debt ceiling to Sh13 trillion in chaotic session

Economy State pushes to raise debt ceiling to Sh13 trillion in chaotic session Thursday February 24 2022 Majority Leader of the National Assembly Amos Kimunya. PHOTO | EVANS HABIL | NMG By EDWIN MUTAIMore by this Author Summary Majority Leader Amos Kimunya successfully pushed an amendment to the 2022/23 Budget Policy Statement (PBS) directing the Treasury to amend the law to accommodate the…

[profjoelblog]

Kenya Airways Suffers Record Loss Owing to the Corornavirus Pandemic

Kenya Airways Suffers Record Loss Owing to the Corornavirus Pandemic

Nairobi — National carrier Kenya Airways has announced that its losses nearly tripled in 2020 to stand at Sh36 billion compared to Sh13 billion in 2019. The announcement was made by KQ’s Chief Financial Officer Hellen Mathuka who pegged the losses on reduced demand for air travel owing to the outbreak of the coronavirus disease. “And the income, which is the main driver for performance this year,…

[timgchile]

Rocas fotograficas sublimables. Modelos... 1065000026 Roca fotográfica sublimable 10cm - SH12 redonda 1065000030 Roca fotográfica sublimable modelo SH09 rectangula 1065000027 Roca fotográfica sublimable modelo SH13 cuadrada 1065000024 Roca Fotografica SH-06x rectangular

[reinaldoteles]

. . Shidosha Black Titanium para cortes precisos e geométricos. . . Desenvolvido pela Leader Italy e produzido no Japão. . . Aço Cobalto com revestimento em Titanium. Disponível em 5,5' - 6,0' - 7,0' . . #Shidosha #sh13 #black #titanium #convex #madeinjapan #barbershop #hairstyle #design #designinspiration #slidecuts #haircut #barber (em Reinaldo Teles) https://www.instagram.com/p/B5ROSZEnuty/?igshid=2oz70qf2ej3t

[templepurohit]

Bhagvad Gita : Chapter - 2 Shloka - 13 - TemplePurohit.com Birth and Death a Physical change "ओम नमो भगवते वासुदेवायः" After explaining the continuity of life(Sh#12), Bhagvan Shri Krishna explained to Arjuna, the secret of birth and death. Merciful Supreme Lord explained that birth and death is nothing but a physical change. Physical change is a continuous phenomenon which takes place in every physical substance all the time. Even the very body by which human identify himself is not same. It changes from childhood to adulthood to old age. In same fashion soul changes from one body to other, called as birth and death. Ch2:Sh13 dehino 'smin yatha dehe kaumaram yauvanam jara tatha dehantara-praptir dhiras tatra na muhyati As our body continuously passes from childhood to youth to old age, the soul similarly passes into another body after death. The physical change in the body doesn’t effect the soul. Wise men do not get bemused by such a change. As the embodied soul continuously passes, in this body, from boyhood to youth to old age, the soul similarly passes into another body at death. A self-realized soul is not bewildered by such a change. जीवन की अनन्तता को बताने के बाद भगवान श्री कृष्ण ने अर्जुन को जन्म और मृत्यु का रहस्य बताया | भगवान ने यह स्पस्ट किया कि जन्म और मृत्यु और कुछ नहीं बल्कि एक भौतिक परिवर्तन है| यह परिवर्तन तो इस जगत का शाश्वत नियम है और हर पल होता ही रहता है| मनुष्य का शरीर भी कभी एक समान नहीं रहता| जैसे वाल्यावस्था से युवावस्था और फिर वृद्धावस्था में अवस्थाओं के परिवर्तन होता है वैसे ही एक शरीर से दूसरे शरीर में परिवर्तन होता है, जिसे जन्म और मृत्यु कहा जाता है| Ch2:Sh13 देहिनोऽस्मिन्यथा देहे कौमारं यौवनं जरा । तथा देहान्तरप्राप्तिर्धीरस्तत्र न मुह्यति ॥ जैसे शरीर में बाल्यावस्था से युवावस्था और युवावस्था से वृद्धावस्था में परिवर्तन होता है वैसे ही आत्मा के लिए एक शरीर से दूसरे शरीर में परिवर्तन होता है| धीर पुरुष(धैर्यवान मनुष्य) इस परिवर्तन से विचलित नहीं होते| https://ift.tt/3nXPZ6n

[loyallogic]

How to Nominate the Shares Owned in Your Own Name

This article is written by Chandana Lakshman, pursuing a Diploma in Companies Act, Corporate Governance and SEBI Regulations from LawSikho.com. Here she discusses “How to Nominate the Shares Owned in Your Own Name”.

Introduction

The word “Nomination” refers to the act of nominating a person in whom the shares would vest in the event of death of the shareholder. On the death of the shareholder, the nominee shall be entitled to the rights, dividend and interest in relation to shares which are held by the deceased shareholder. Shares are freely transferable from one person to another in case of public companies subject to any restriction imposed by the AOA.

Appointment of Nominee

However, companies act 2013 doesn’t lay down any specific qualifications which are required to appoint a nominee. 

And it is not compulsory to appoint a nominee under Companies Act, 2013.

Only individuals who are holding shares either individually or jointly can make nominations.

Non-individuals like society, trust, body corporate, Karta of undivided family, holders of power of attorney are exempted to appoint as a nominee. 

Where a minor is appointed as a nominee, the guardian of minor has to sign on behalf of minor and along with that the name, address of the minor, the name, address and photograph of the guardian must be submitted.

A nominee can be a non-resident too, there are no restrictions.

Nomination of shares- Procedure

Section 72 of companies act, 2013 gives right to the shareholder the power to nominate:

Shareholder irrespective of the time, nominate any person to whom all his securities are vested in the event of his death.

In case the shares are held by joint shareholders jointly then the joint shareholders can nominate any person to whom all their securities be vested in the event of death of the joint holders.

Only the nominee can get all the rights which are vested in the shareholders in the event of his death and there is exclusion of all other members unless the nomination is varied or cancelled.

Where the shareholders appoint any minor as nominee, he may be during the appointment of minor, may appoint any other person entitled to securities of the company in the event of the death of the nominee during his minority.

             Click Above

Rules for nomination of shares [Companies (Share Capital and Debenture) Rules, 2014]

Rule 19 of companies ( share capital and debenture) rule 2014 states:

Shareholders may nominate any person as his nominee at any time by filing the Form No. SH1 and the securities shall be vested in the nominee as soon as the death of the shareholder.

As soon as the nomination is completed, entry shall be registered by the shareholder in the register.

Joint shareholders shall file their nomination application in the Form No. SH13.

The request for nomination should be recorded by the company within two months from the date of receipt of the duly filed and signed in a nomination form.

In the event of shareholders death the nominee acquires two rights he can either:

Register himself as holder of the securities; or

Transfer the securities.

In case if the nominee chose the first option he shall send to the company a notice in writing which is signed by him stating his intention and along with the death certificate of the deceased share it with the debenture holder.

All the limitations, restrictions and provisions of the act relating to the right of transfer and registration of transfer shall be applicable.

After registering himself as the member of the company he shall be entitled to the same dividend, interest and other advantages as the deceased shareholder.

By giving notice to the company in Form No. SH.14 a nomination may be cancelled or varied by nominating any other person in place of present nominee by the holder of securities who has made the nomination.

Where the nominee is a minor, the holder of securities  making the nomination, may appoint a person in Form No. SH13 who shall be entitled to the securities of the company, in the event of death of the nominee during his majority.

Circumstances when nomination can be cancelled

There are few circumstances in which after the appointment of nominee, the shareholder can revoke the former nominee and appoint a new nominee for his shares:

By giving a notice of cancellation to the company in Form No. SH-14, the shareholder can appoint a new nominee.

After appointment of nominee by the joint holders and if any one of joint holders dies during or after appointment of nominee the other shareholder can revoke the first nominee and appoint a new nominee.

When the nominee dies before the shareholder, the nomination automatically gets cancelled.

Rights of a Nominee

On the event of death of the shareholder, the nominee takes the place of the deceased shareholder immediately.

Nominees enjoy all the rights of the deceased shareholder only when he registers himself as a member of the company.

If articles of association permits he can exercise membership rights in relation to the meetings.

However, the ownership rights of the nominee have been in conflict with the legal heirs of the deceased. It was in Dayagen Pvt Ltd v. Rajendra Dorian Punji [Co. A.(SB) No.14 of 2007,  High Court held that the nominee has exclusive ownership rights on the shares held by him, upon the death of the shareholder.

In Harsha Nitin Kokate v. Saraswat Co-operative Bank Limited [2010 SCC online Bom 615] after interpreting the provisions of Section 109A and 109B of Companies Act 2013, a single judge of Bombay High court held that it’s the nominee who becomes the beneficial owner of the shares which was held by deceased shareholder and not the legal heirs of deceased and this case overrides the facts legal heir will not come into play unless and until the deceased shareholder appoint him as a nominee.

The Kokate case caused a lot of confusion and it was overruled by Salgaonkar case, in this case, it was held it is the legal heir who will obtain the ownership rights of share certificates and not the nominees.

The present position under Companies Act,2013 relating to the rights of nominee is:

Mere trustee for legal heirs of deceased shareholders.

No ownership rights are created.

Only fiduciary relationship with the legal heirs to safeguard the shares and membership rights.

Role of Nominee

Black s’ law dictionary said the role of nominee is that he holds the legal rights for the benefit of others or one who receives and distributes funds for the benefit of other. The role of nominee is interpreted under various statutes. Under the provisions of insurance act in Sarabati v. Usha Devi (AIR 1984 SC 346), it was held in this case mere nomination didn’t confer any beneficial interest on the nominee it only conferred the right of to receive the money of which the insurer got a valid discharge of its liability under the policy. The interest in policy belonged to the holder alone and the beneficiary cannot claim the interest as his right. On the death of the policy holder, the amount payable under the policy became part of his estate which was governed by law of succession.

In Shipra Sengupta v. Mirdul Sengupta [(2009) 10 SC 680] it was held that the nominee is entitled to receive the same holdings as were held and so positioned by deceased but the same is to be distributed as per the laws of succession.

The role of nominee can be only that of the trustee. He holds the legal title for the benefit of others or he who receives and distributes funds for the benefit of others.

Position of Nominee under various laws

Section 72 of Companies Act 2013, on the event of death of the shareholder a nominee who has been appointed by the shareholder gets his securities vested in him.

Regulation 29A of SEBI ( Mutual Funds Regulation),1996 the unit held by the unit holder would vest in the event of his death in his self-assigned nominee.

Section 45ZA of the Banking Regulation Act, 1946 it states that the deposits of the deceased is to be returned to the nominee in the event of the death of the former.

Shares held in Demat form

As per the latest amendment of SEBI the shares and other types of which are held in physical form shall be compulsory converted into Demat form. The main reason for this amendment is to curb the fraud, and manipulation risk in physical transfer of securities by unscrupulous persons. 

Now, the shareholder and his nominee has to compulsory open a Demat account and along with that he needs to add his residential details, bank account to transfer the dividend.

Conclusion

After a lot of controversies and ambiguities it is said that nomination is the only means and not the end. The provisions regarding nomination are made only to see that the estate or rights of the deceased shareholders are protected till the legal representative of the deceased takes appropriate steps. Nominee is neither the holder of the title, ownership, nor has any personal interest in the property.

Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skill.

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The post How to Nominate the Shares Owned in Your Own Name appeared first on iPleaders.

How to Nominate the Shares Owned in Your Own Name published first on https://namechangers.tumblr.com/

[briefnewschannel]

Judge orders disclosure of John Keen’s wealth in succession battle

Judge orders disclosure of John Keen’s wealth in succession battle

Economy Judge orders disclosure of John Keen’s wealth in succession battle Thursday August 05 2021 By JOSEPH WANGUIMore by this Author Summary The High Court has ordered a disclosure of assets belonging to the estate of the late politician John Keen, as a dispute intensifies over its management and sharing. The estate is estimated to be worth Sh13 billion. Justice Aggrey Muchelule ordered…

[realestatedigitalsales]

How banks fell victim to their own greed for handsome returns

How banks fell victim to their own greed for handsome returns

How banks fell victim to their own greed for handsome returns

By OTIATO GUGUYU IN SUMMARY A huge number of people who took out real estate loans have defaulted, with lenders forced to plead with them on how the money will be repaid. Nothing describes frustration than the tale of a banker who has to plead with his customer to choose their own terms on how they will repay a loan they have already defaulted on. The shoe is usually on the other foot, with an overbearing lender deciding on how long you will stay with their money, what rate you will pay and setting up painful repercussions for missing payments that should whip you into line. The famous quote, “If you owe the bank $100, that's your problem. If you owe the bank $100 million, that’s the bank’s problem”, holds true until you are in Kenya in 2020. Almost everyone who took out a real estate loan is defaulting, becoming the banks’ problem. Bankers are unable to sell property on the auction market and have now been forced to renegotiate loans on their customers’ terms. A keen observer will have noticed that auctioneers are finding it hard to dispose of property, with the same assets appearing week after week in the papers. “Customers discovered that banks cannot sell the properties and when banks approach them they tell them to go ahead and sell,” said Eric Oluoch, group CEO at debt management firm Quest. “Banks realised they will find themselves holding a huge portfolio of property that cannot be disposed of and that is when they came up with this new plan. I think what we are going to have is that the terms of the mortgages are going to be longer,” he said. Economist Robert Shaw says he does not pity banks for falling into this quagmire. He said lenders fuelled this unstainable system and are victims of their own practices. “It is not just a question of customers, banks also made lending decisions without being aware of the circumstances of the market. Banks must bear in mind that the relationship with a customer is two way, they should look at themselves and see that maybe there is a different way,” he said. Mr Oluoch, says this is a build-up from when bankers never used to lend to people without property until Barclays started offering unsecured loans. This ushered in a period where loans could be issued on the strength of a payslip, a balance sheet or even a history of banking transactions, liberalising the market and causing a credit boom. HOUSING BOOM During this period of plenty, a housing boom was created in the market funded partly by a thin mortgage sector but mostly unexplained cash. These houses were then used to take up more loans to build more for a seemingly insatiable market for office space and high-end properties in the Rundas and Kilimanis. “At the time, a lot of people were putting up houses, which fuelled a situation of speculation in the real estate sector with superficial demand and crazy prices. You could go to an empty plot kilometres away from Nairobi and because a university had promised to build there or a road would be built there later, prices would go up,” Oluoch said. “Banks were giving loans on properties with crazy values,” he said. But when the rate cap was introduced, suddenly banks became defensive, stopped lending to risky businesses and concentrated on those with property, starving the rest of the economy of much needed cash to keep up the demand. Then the economy took a dip with government delaying payments to suppliers and cutting down expenditure on large-scale infrastructure. DOMINO EFFECT The domino effect hit businesses denied loans by banks and starved of cashflows by government, leading to losses in wider sectors of the economy. As a reaction, businesses themselves started firing workers to cut costs, sending home thousands of employees, and demand for houses vanished. People stopped servicing their loans and banks started foreclosures, repossessing houses and selling them via auction. “With no disposable income, it became a case of whether you will eat and pay school fees or service a loan, it was a no-brainer,” Oluoch said. The problem was that those who sit at auctions are looking for a bargain and would not pay those crazy values the market boom had created. But repricing was almost impossible given the consumer protection laws stopping banks from selling distressed properties for peanuts, requiring them to get as much value as possible. Section 97 of the Land Act 2012 requires banks to exercise duty of care on reposed properties and empowers defaulters to sue if their assets are sold off cheaply. It came up after several cases of collusion had seen properties sold off for a song then banks would audaciously demand more money from auctioned clients to top up the difference. “The problem is that nobody is offering 75 per cent so we keep advertising, but we are not selling. So someone is sitting on money, but can’t buy because the price is up,” said NCBA Group Managing Director John Gachora.

How banks fell victim to their own greed for handsome returns

MAKES NO SENSE Houses that were selling for Sh25 million in Kilimani two or three years ago are going for Sh13 million and that is by their owners not the banks. Deepak Dave of Riverside Advisors said the costs and agitation involved with repossession only to then find you are still in loss makes no sense. According to bankers who have talked to Smart Company, they are now forced to go back to the property owners to renegotiate terms. “The customer shows you this are my Local Purchasing Orders, and he has not been paid, at that point what can you do, we just sit with them and say look, let us see what arrangement we can have rather than auctioning,” a local banker, who did not wish to be named, told Smart Company. National Bank of Kenya CEO Paul Russo says the first option of dealing with defaulters is not to auction but rather try and sit with them to find an amicable solution. “There are those willing to come to the table, those we are going after their security and those who we are pursuing over and above through courts. You can’t rule out that there are people who take loans with no intention of repaying,” Russo said. Deepak said the strategy only makes sense if the restructuring is done with enough cost attached or a recovery-dependent cash sweep that means the developer is not getting a gift. He said that he hoped the Central Bank of Kenya is keeping an eye on what is being signed off at the banks “I think what is happening is the defaulting developers are likely getting a gift. If the market recovers, then their debt looks less expensive. If it stays weak, then the lender is carrying the cost of waiting, not the developer,” he said. There is fear that we may have blown a real estate balloon like the 2008 financial crisis and the reason it has not burst is this accounting trick. Deepak said that fake restructuring is not repricing housing, it is falsely padding bank capital. Sooner or later this freezes working capital and capex in the economy, hurting the wananchi most of all as demand falls. “The 2008 crisis did not affect us so much because we were not credit intense but now we have fintechs lending, banks setting up fintechs to lend and people are credit driven. Unfortunately for us it is driven by consumption rather than creating cash-flow. The government needs to find a way to pump money into the economy so that money starts flowing and hopefully people can start paying,” said Oluoch. STOPPED LENDING To survive, banks have stopped lending to real estate projects a trend that has seen mortgage banks chase mobile loans and retail banking rather than touch real estate. “The prolonged troubles in the real estate sector, and the economy at large, have weakened banking asset quality. Based on banks internal models and expectations of the economic environment, this potentially leads to increased provisioning levels and write offs. Cautious lending by banks, in turn, leads to economic constraints as PSCG is subdued,” said Patrick Mumu, a research analyst Genghis Capital Ltd. Last year HF Group cut prices on 700 houses by 30 per cent and this year decided it will exit the home-construction business once it completes the units it is currently building. Shelter Afrique, another mortgage lender, froze loans for two and a half years and announced restructuring and reforms of its financing model. Bankers know that these attempts at surviving will not suffice and only removal of the law limiting pricing will help them realise the value of their dud home loans. Mr Gachora says the creation of a State-backed asset management company that will shoulder the difference between what potential buyers are demanding and the valuation of the distressed property could be the solution. “If the buyer in the market takes at say 10 per cent below the required minimum price, government should take that hit and give a very long term loan to the owner of that asset to repay over time,” said Mr Gachora. STILL UNKNOWN The real burden of these restructured loans is still unknown given the structures of loan agreements related to real estate that range from mortgages, loans secured by properties and real estate properties financed by banks. According to Central Bank data, as of October last year, banks had lent Sh372.5 billion to the real estate sector. About 17 per cent of Kenya Commercial Bank has been loaned out to real estate while Equity Bank has given 23 per cent of their book to housing loans. Cooperative Bank has packed 12 per cent of their loan book in housing. Housing Finance, which primarily funds homes, has no indication of what percentage of their book is exposed to real estate. Analysts say that we first need to get honest figures out of the banks and then get them to raise capital or write off the book. Then later, an “asset recovery agency” to help banks monetise and liquidate their bad loans is now needed, and CBK should allow a local fund manager to set up such a fund. “Second option is to help the banks hide the problem and ‘bless’ bad restructures so the banks can corruptly hide the issue, then we all pray the problem just solves itself. This would be highly risky not to mention unlikely, and I believe the governor is not the sort to let that happen,” Deepak said. Mumu says all is not lost, the real estate market has experienced appreciation in certain pockets though this has been supported by infrastructure, not speculation. Read More https://global.goreds.today/real-estate-287/   Read the full article