Economics and Business
Quarterly Reviews
ISSN 2775-9237 (Online)
Published: 24 June 2018
Classification of Credit Security in Nigeria: Resolving the Perceived Dichotomy
Jacob Otu Enyia, Emmanuel Usang Okon
University of Calabar, Nigeria
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10.31014/aior.1992.01.02.18
Abstract
This article is focused on the classification of credit security in Nigeria with a view to resolving the perceived dichotomy in the categorization. Credit security generally is within the ambit of property law which is circumstanced in secured credit. The work also attempts to determine the legal basis of this classification and the inherent utilities. We summarize that classification of security should be maintained for the purpose of distinction and clarity in aid of the unwary and non-legal minds.
References
Omotola J., The law of Secured Credit, Evans Brothers, Nigeria (2006), p. 27.
Note however that even now in English law, allodial, absolute interest, etc. are extinct, as a holder of land does so in possession for the Crown. A situation similar to the Land uses Act’s leasehold interest, or estate that an individual enjoys.
Omotola, Op.cit p. 1.
Goode R. M, Legal Problems of Credit and security, 3rd Ed. London, Sweet and Maxwell (2003) p. 3.
See Grant Gilmore, Security Interest in Personal Property, being classic text on the functional approach.
Goode R.M. Op. cit at Pp. 3-4.
Omotola Op.cit, p. 18.
S for illustration the case of Alumininum Industries Vaasseen BV. V. Romalpa Aluminium Ltd. (1976) NWLR 676
Omotola supra p. 7.
Smith, I.O.., Nigerian Law of Secured credit, Lagos Ecowatch, (2001) p. 6.
Allan D., Security: Mysteries, Myths and Monstrosities, Monash L.R. (1989) p. 345.
Anything that makes money more assured in its payment or more readily recoverable is deemed security. See John S. James, Stroud’s Judicail Dictionary of Words and Phrases 4th Ed, Vol 5, p. 2470.
Goode supra p. 5.
Omotola supra see chapter 2
Smith broadened into two heads and it is under these that he discussed all of the different shades of security interest.
Supra Pp. 9-10.
This equity of redemption is crucial in differentiating a sale from a mortgage. A right to redeem his tied down the title at any time. It goes side by side the mortgage from the time of creation. Thus goes the saying once a mortgage, always a mortgage until foreclosure. See Rhodes V. Dalby (1971) AER 1144.
Smith supra p. 12.
Omotola Op. cit Pp. 20-21.
See ss. 108(1), & 109(1) of the Property and Conveyance law, Cap 100, Laws of Western Region. This Law now applies in the various states that constitute the old western Region.
As in the case of Savannah Bank Plc. V. Ajilo (1989) SCNJ 159, where the formalities of Governor’s consent was not first had and obtained.
Goode supra p. 8.
Whether by a proper over the property or by deposit of the title deeds over the property with the creditor. See the case of Okuneye V. FBN (1996) 6 NWLR (pt 457) p.749.
Supra p. 22.
Cap 59, Laws of the Federation of Nigeria, 1990.
Ibid S. 178; Siebe Gorman and Co Ltd V. Barclays Bank Ltd. (1979) 2 Lloyds Rep142.
Omo-Bare V. New Nigerian Bank Ltd (1978) ALR Comm 180 (1904) AC 355.
Ibid
Goode Op. cit p. 5.
Smith Op. cit p. 12.
Fasakin V. Fasakin (1994) 4 NWLR (Pt 340) 597 CA.
Supra p. 20.
Ibid Pp.108-109.
Supra CAMA 567.
Omotola, supra p. 21
James R.W. Modern Land Law in Nigeria, University of Ife Press, (1974) p 224
Based on the understanding that pledges once a pledge forever a pledge particularly under Customary law, see Ikeanyi V. Adighohu (1957) 2 ERNLR 39 per Mbanefor.
Supra p. 17.