I dealt with the meaning of a Guarantee and referred to the case of Trade Bank PIc v. Khalid Barakat Chami (2003) 13NWLR (Pt.836) 158 @ 216. I also referred to Fortune International Bank PIc v. Pegasus Trading Office (GmbH) and @ Ors. (supra) – Where it was stated by Uwaifo, JSC, that the tendency is that the law appears to have moved to the centre to make the right of the creditor less conditional. That the creditor is now entitled to proceed against the guarantor without or independent of the incident of the default of the principal debtor. I also referred to the observation of Ayoola, JSC, in the case of African Insurance Development Corporation v. Nigeria (LNG) Liquefied Natural Gas Ltd. (2000) 4 NWLR (Pt.653)494 @ 505-506; (2000)2 SCNJ, 119; (2000) 2 S.C. 57. I then stated that it is settled that the liability of a guarantor becomes due and mature immediately the debtor/borrower becomes unable to pay its/his outstanding debt. That the guarantor’s liability is then said to have crystallised. I referred to some other decided authorities in this regard and stated that a Surety or Guarantor, is bound by the written agreement it/he entered into. – Ogbuagu JSC. Nwankwo v. Ecumenical (2007)
WHAT IS A SECURED DEBT
A secured debt is a debt on which payment is guaranteed by an asset or a lien. This means that a secured debt has collateral to reduce the risk associated with lending, such as mortgage. Where the borrower defaults on payment, the bank seizes the mortgage property, sells it and uses the proceeds realized to pay back the debt as the property is liable to forfeiture. — M.L. Shuaibu, JCA. Ekpo v GTB (2018) – CA/C/324/2013