BANK LENDING II
Tutor: MR. Nehemia Uzera
STATEMENT ABOUT ACADEMIC HONESTY AND INTEGRITY
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Academic Dishonesty includes, but is not limited to:
- Using the ideas, words, works or inventions of someone else as if it is your own work.
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COURSE INFORMATION
COURSE: ADVANCED DIPLOMA IN BANKING, FINANCE AND CREDIT
MODULE: BANK LENDING II
MODULE CODE: ABL 3000
MODULE DESCRIPTION:
The lending process has immensely contributed to the development of the Namibian economy. Bank lending is very relevant to all sectors in the economy both private and public sectors because it is one of the major sources of finance. Banks in this idea entails commercial banks, which mainly grant short term credit facilities, development banks which grant medium and long term credit facilities and agricultural bank for agricultural credit, which gingered every farmer both subsistence and commercial to put more effort in the field. This module is aimed at giving a comprehensive overview of bank lending nationally, while drawing lessons from international lending practices (United States of America and Japan).
NQF Level: 7
CREDITS:
PREREQUISITES: None
EXIT Learning Outcomes:
Upon successful completion of this module, students will be able to:
1. Differentiate between various lending concepts.
2. Understand the meaning of limits exposures to counterparties and risk management.
3. Define the meaning of various agreements and their legal implications.
4. Have knowledge on various loans, mortgages and credit lines.
5. Understand defaults on credit agreements, as well as bankruptcy.
6. Be knowledgeable on aircraft finance and real estate investment.
PRESCRIBED TEXT BOOK:
- Student guide: Bank Lending II
Module Content
Unit:
1. WHAT IS LENDING
1. What is a Country Limit
2. What is a Legal Lending Limit
3. What is a Minimum Credit Limit
4. What is Asset-Based Lending
5. What is Unsecured Lending
6. What is Warehouse Lending
7. What is Corporate Lending
8. What is Commercial Lending
9. What is Consumer Lending
10. What is Security Lending
11. What is Predatory Lending
2. LENDING AGREEMENTS AND RELATED TERMS
1. What is a Letter of Comfort?
2. What is a Credit Agreement
3. What is a Lending Agreement
4. What is a Repayment Agreement
5. What is a Line of Credit Agreement
6. What is a Note Agreement
7. What is a Debt Settlement Agreement
8. What is a Personal Loan Contract
9. What is Truth in Lending (US Law)
3. THE LENDING ENVIRONMENT
1. Types of Loans
2. What is an Originator
3. What is a Lien
4. What is an Appraisal
5. What is a Finance Charge
6. What is a Portfolio Lender
7. What is a Mortgage Pipeline
8. What is a Fraud
9. What is Subprime Credit
10. What is a Home Mortgage Disclosure Act (US)
4. DEBTS AND RELATED TERMS
Definitions of Debts terms:
1. Subordinated Debt
2. High-Yield Debt
3. Toxic Debt
4. Title Loan
5. Syndicated Loan
6. Subprime Loan
7. Negative Pledge
8. Truth in Lending Disclosure
9. Title Search
5. DEFAULT AND RELATED TERMS
1. Non-Performing Loans and Related Issues (NPLs)
2. What is a Default
3. What is Foreclosure
4. What is Repossession
5. What is Lawsuit
6. BANKRUPTCY AND RELATED TERMS
1. What is Bankruptcy
2. Bankruptcy in the US
7. AIRCRAFT FINANCE
1. Meaning of Aircraft Finance
2. Financing a Private Aircraft
3. Financing a Commercial Aircraft
4. Bankruptcy in Japan Airlines
8. BASICS OF MORTGAGE LOANS I
1. Types of Mortgages
2. Types of Loans
3. Differences between Fixed Rated Mortgage and Variable-Rate Mortgage
9. BASICS OF MORTGAGE LOANS II
1. Amortization Related Concepts
2. Creating an Amortization Schedule
3. Outstanding Loan Balance Calculation
4. What is a Mortgage-Backed Security
5. What is a Mortgage Note
6. Statistical and Industry Jargon
10. REAL ESTATE INVESTMENT
1. Basic Real Estate Terms
2. Real Estate Investing
3. Real Estate Development
4. Construction
5. Commercial Property
6. Real Estate Appraisal
7. Three Approaches to Property Valuation
ASSESSMENT AND EVALUATION: Continuous assessment 50%
Examination 50%; 1 x 3-hour examination paper
Minimum pass requirement for this course: 50%
COURSE POLICIES
General Academic Policies:
It is the student's responsibility to be familiar with and adhere to ABN’s Policies.
AUTHORISATION:
This course is authorised for use by:
___________________________________
__________________________
Head of Department Date
ACKNOWLEDGEMENT BY STUDENT
(To be completed by all students on the course, detached from the course outline and kept on record in the department)
I, (insert name), (Student number), hereby acknowledge that I have received this course outline for (insert course title and code), and that I have familiarised myself with its content, in particular the statement about academic honesty and integrity. I agree to abide by the Policies and arrangements spelt out in this course outline.
______________________ _______________________
Signature of Student Date