CAPE Law Unit 2 · 2008 · Paper 2 · Question 9

Mrs Swankie borrows 250,000 at 10% interest from a bank to build a house, agreeing to monthly repayments of 3,500. A year later, severe illness prevents her from working, resulting in 12 months of missed payments. The bank grants an extension of time, but she remains unable to pay.

Advise the bank on the legal remedies available against Mrs Swankie, supporting your advice with statutory provisions or case law.