alleryStart learning →Under s.180(5), a lender enforces excess debt if it proves:
ACollateral was provided
BBoard approval was taken
CInterest was paid
DGood faith, no knowledge
Answer & Solution
Correct answer: D. Good faith, no knowledge
A lender is protected only if it advanced the money in good faith without knowing the limit was exceeded.
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Related questions
Section 186(4) requires loans and investments to be disclosed in the:Maximum imprisonment for contravening s.186 per s.186(13) is:s.186(11) exempts lending by which company in ordinary business?The s.186 register of loans, guarantees and investments is kept at the:A company in default on repaying deposits may not give loans under s.186(8) until:Loans under s.186 cannot be at an interest rate below the yield on:Under s.186(5), a subsisting term loan needs prior approval of:Section 186(5): a Board resolution sanctioning a loan needs consent of: