PUBLIC-PRIVATE SECTOR TO BLAME FOR A YAWNING DOUBLE-DIGIT GAP BETWEEN THE INFLATION RATE AND THE PRIME COMMERCIAL LENDING RATE AVERAGING OVER 12% APR BENEFITING BANKS AMONG OTHER LENDERS

Govt , Borrowers share blame of high interest rates, says Ggoobi

What you need to know:

monitor.co.ug, July 19, 2024 | Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi has said that both government and borrowers are to blame for Uganda’s high interest rates. 

Speaking during the second National Microfinance and Savings Group Conference 2024 in Kampala, Mr Ggoobi said that whereas some government actions partly contribute to high interest rates, the blame is equally shared by borrowers, some of whom are not creditworthy, untrustworthy, and lack good quality collaterals against which loans are advanced.  

For instance, he said, because government has been increasingly borrowing from the domestic market, banks have prioritised lending to government, while the private sector players who seek to access credit are subjected to high interest rates. 

However, Mr Ggoobi noted that government was working on a plan to mitigate domestic borrowing by focusing its attention on local revenue mobilisation, which would increase Uganda’s tax-to-gross-domestic ratio to at least 16 percent from the current 14 percent. 

“Our long-term strategy is to mobilise our revenue from taxes and reduce internal borrowing. We are also improving traceability of the borrowers by introducing national identification [and improving the quality of collateral by] improving the land register,” he said.

“Us as borrowers, we are not trustworthy. In most cases, credit is about traceability and the quality of the collateral. Banks like it when government borrowing increases because they have a better borrower,” Mr Ggoobi added, noting that financial institutions see government as a non-risk borrower compared to many private sector borrowers that easily default. 

While addressing the NTV-Absa Post Budget Dialogue last month, Mr Ggoobo said banks were sitting on about Shs27 trillion, noting that government was only borrowing the excess. 

However, he also indicated that government, despite public pleas, had continued to borrow from the domestic market “to save some of these banks”.

The share of domestic debt has been growing over time. As of December 2023, the stock of public debt rose to Shs93.38 trillion, of which external was Shs55.37 trillion, while Shs.38 trillion was domestic debt. 

Mr Ggoobi also indicated that government has put in place more measures to improve creditworthiness by working with Uganda Registration Services Bureau to register business borrowers, which will eventually improve the quality of information about borrowers.

“Interest rates have reduced. 10 years ago there was an average lending rate of 25 percent, today the average prime lending rate is a 17.7 percent. This is still high, [but] we are fighting to bring it to a single digit and that can be done by addressing the challenges,” he said.

The second National Microfinance and Savings Groups Conference 2024 sought to leverage collaborations, partnerships, and promotion of a savings culture to foster socio-economic transformation.

Monitoring borrowers

State Minister for Microfinance Haruna Kasolo, urged banks to monitor people who they lend money instead of waiting for them to default. 

“Banks should not wait for businesses to collapse. They collect 2 percent of the loan for monitoring. They should use it to visit and advise businesses rather than celebrating when they fail for them to auction mortgaged properties,” he said, noting that government has through the Parish Development Model extended Shs2 trillion with each PDM Sacco across the country. 

Mr Kasolo also indicated that government last year launched the Second National Financial Inclusion Strategy (2023-28) to combat poverty and spur economic growth through accessible financial services.

“This conference marks a crucial step in promoting collaboration and knowledge exchange within the microfinance sector, paving the way for a more inclusive and digitally empowered financial ecosystem,” he said. 

SUPPLEMENT

TENETS OF TRUST LEGACY

GLOBAL SOUTH ALERT: TRUST FROM SINCE MEDIEVAL ENGLAND, TO BEYOND AMERICAN DECLARATION OF INDEPENDENCE ON JULY 4, 1776.

TAGLINE: "TREASURE THE PEARL , RIDE SPECIAL MOBILITY."

LINK: iSpecial Mobility Ecosystem

VISION STATEMENT: "WHOLE BUSINESS SECURITIZATION (WBS) FOR AFRICA AND BEYOND."

🌐 iSpecial Mobility Ecosystem

UGANDA: ALTERNATIVE INVESTMENT CONFERENCE – 2024

THEME: "Catalyze Private Capital for Value and Social Impact."

 

Capital Markets Authority- Uganda is proud to be sponsoring the Alternative Investments Conference 2024, which will take place on June 12th at Sheraton Hotel - Kampala.

This year's theme, "Catalyze Private Capital for Value and Social Impact," aligns with our mission to enhance Uganda's private markets and drive economic development.

The conference aims to change investor perspectives, highlight investable projects, and build meaningful connections within the investment community.

We invite industry regulators, policy makers, financiers, investment professionals and those interested in exploring alternative investment opportunities to be part of this enlightening event.

Don't miss out ! Register here to participate: 

CLICK THIS LINK FOR REGISTRATION

SUPPLEMENT

TENETS OF TRUST LEGACY

GLOBAL SOUTH ALERT: TRUST FROM SINCE MEDIEVAL ENGLAND, TO BEYOND AMERICAN DECLARATION OF INDEPENDENCE ON JULY 4, 1776.

TAGLINE: "TREASURE THE PEARL , RIDE SPECIAL MOBILITY."

LINK: iSpecial Mobility Ecosystem

VISION STATEMENT: "WHOLE BUSINESS SECURITIZATION (WBS) FOR AFRICA AND BEYOND."

🌐 iSpecial Mobility Ecosystem

GLOBAL AGENDA 2030 : UGANDA'S MAIDEN TEN-FOLD GROWTH DEVELOPMENT ROAD MAP – NDP IV ( 2025/2026 - 2029/2030)

Ministers Lugoloobi Says NDP IV Crucial for Uganda's Economic Future

Theme : "Sustainable Industrialization for Inclusive Growth, Employment, and Wealth Creation." 

File Photo/Courtesy: Hon. Amos Lugoloobi, Minister of State for Planning

softpower.ug | MUHAMADI BYEMBOIJANA | May 29, 2024 | The Minister of State for Planning, Amos Lugoloobi, has announced that the National Development Plan IV (NDP IV) should be ready by September 2024. This plan will inform the country's macroeconomic framework and budgeting processes for the fiscal year 2025/26. 

NDP IV is the fourth out of six National Development Plans (NDPs) designed to implement Uganda Vision 2040. It is also the last plan to deliver the Global Agenda 2030 of the Sustainable Development Goals (SDGs) and the first within the implementation of the government's strategy for achieving ten-fold growth. 

The goal of NDP IV is to achieve household incomes and employment for sustainable socio-economic transformation, under the theme "Sustainable Industrialization for Inclusive Growth, Employment, and Wealth Creation." 

Speaking at the National Planning Conference, Minister Lugoloobi stated that the strategic direction for NDP IV was approved by Cabinet in March 2024, aligning with the strategy of growing the economy ten-fold. He revealed that the government expects NDP IV growth. (2025/26-2029/30) to provide pathways to attaining the much-desired double-digit growth.

In his remarks, the Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggoobi, explained that the government has introduced the concept of Indicative Planning Figures ((PFs) to ensure that NDP IV is fiscally realistic with more effective allocation of limited resources. 

Ggoobi emphasized that IPFs represent a step towards ensuring the efficient use of government resources, safeguarding ongoing commitments, and strategically addressing new priorities in line with the ten fold growth strategy. He highlighted the importance of carrying forward critical projects such as the standard gauge railway (SGR) and oil projects within NDP IV. 

He stressed the need for prudent and effective planning in developing NDP IV, ensuring that development plans are based on available resources and aligning resources with revenue forecasts to maintain financial stability. He warned against overambitious projections and underfunded priorities. 

Ggoobi encouraged programme leaders to focus on developing detailed Programme Implementation Action Plans (PIAPs) with clear resource allocations. He also called for effective coordination and collaboration between the government and development partners to maximize resource utilization and minimize duplication of efforts. 

The government plans to achieve NDP IV through five strategic objectives: 

Sustainably increasing production, productivity, and value addition in agriculture, minerals, oil & gas, tourism, ICT, and financial services.

 Enhancing human capital development. Supporting the private sector to drive growth. Building and maintaining strategic sustainable infrastructure. 

Strengthening good governance, security, and the role of the state in development.

Meanwhile, Lucy Nakyobe, the head of Public Service, noted that the government will prioritize selecting a few high-impact growth enhancing projects over a consortium of projects. She emphasized that the benefits of these high-impact projects, in terms of enhancing household incomes, wealth creation, and job creation for Ugandans, should outweigh the costs of invested public funds. 

"This will be achieved by implementing the Public Investment Management Systenm (PIMS) reforms, improving governance of project selection, enforcing competitive processes for contractors, and minimizing costs associated with lengthy and cumbersome procurement processes, she said. revealed

Charles Olwenyi Ojok, Deputy Executive Director,  the National Planning Authority (NPA), that NDP IV will guide future national budgets and other decentralized plans. 

SUPPLEMENT

TENETS OF TRUST LEGACY

GLOBAL SOUTH ALERT: TRUST FROM SINCE MEDIEVAL ENGLAND, TO BEYOND AMERICAN DECLARATION OF INDEPENDENCE ON JULY 4, 1776.

TAGLINE: "TREASURE THE PEARL , RIDE SPECIAL MOBILITY."

LINK: iSpecial Mobility Ecosystem

VISION STATEMENT: "WHOLE BUSINESS SECURITIZATION (WBS) FOR AFRICA AND BEYOND."

🌐 iSpecial Mobility Ecosystem

ROBUST CORPORATE GÓVERNANCE: AN INEXPENSIVE STEPPING STONE TO BE USHERED INTO THE REALM OF CAPITAL MARKETS

Capitalize on Governance to access Patient Capital

By: Josephine Okui Ossiya,

Chief Executive Officer,

Capital Markets Authority – Uganda

What you need to know:

Access to capital remains the top challenge that business founders and owners in Uganda face. In the case of bank financing, access to capital is mainly driven by variables such as cash-flow projections (an indicator of ability to service debt) and the availability of a security that can be pledged by a borrower. 

In simple terms, if a borrower does not demonstrate the ability to generate cash-flows in the future or provide a satisfactory security, they are unlikely to access credit from a bank. In the case of capital markets, among the key drivers determining access to capital is projections around your cash-flows and how organised your business is, as represented by your corporate governance practices. The ability to generate cash-flows in the future and sound corporate governance practices are critical to accessing long-term, patient, non-bank capital in the capital markets. But what role does corporate governance play in increasing access to capital markets?   

DAUNTING IRONY: VIRTUOUS DEBTORS (BANKS) REAPING MASSIVE WEALTH ACCUMULATION AT THE EXPENSE OF DELINQUENT CREDITORS (DEPOSITORS)

BoU Report: Banks Thrive on Interest Income from Government Securities

File Photo/Courtesy: Bank of Uganda, Headquarters Building.

ankoletimes.co.ug, May 18, 2024 2:02 PM | According to Tumubweinee Twinemanzi, the executive director in charge of supervision at the Bank of Uganda (BoU), the profitability of commercial banks in Uganda has been significantly influenced by interest income derived from government securities.

The banking sector witnessed a substantial increase in net profit after tax, marking a notable growth of 15.9% to a total of sh1.5 trillion. This surge in profitability was predominantly propelled by a 13.8% rise in interest income and a 14.4% increase in fee income, as reported by Twinemanzi.

Twinemanzi further elaborated that during the year ending March 2024, the profitability of supervised financial institutions was predominantly fueled by interest income earned from government securities.

Data from the Bank of Uganda indicates that the return on investment for banks experienced a marginal improvement, edging up from 2.9% to 3.1%. While this suggests a slight enhancement in the sector’s overall performance, it underscores the importance of interest income from government securities.

Examining the cost-to-income ratios, credit institutions and microfinance deposit-taking institutions recorded ratios of 112.7% and 97.1%, respectively. These figures provide insights into the operational efficiency and financial health of banks within the sector.

In April, leading commercial banks released their earnings reports for the period ending December 2023. Notably, Dfcu Bank’s lending to the government resulted in approximately sh131 billion in interest income during the review period, reflecting a significant increase from the sh86 billion recorded previously. The bank reported a profit after tax of sh34 billion for the period.

Similarly, Absa Bank Uganda earned over sh162 billion in interest income from investment securities in 2023, contributing to its net profits of sh146 billion, compared to sh141 billion in 2022.

The passage of the sh72.13 trillion national budget by Parliament on May 16 allocated a substantial portion to servicing Uganda’s debt to both domestic and foreign lenders, amounting to about sh34.017 trillion. This underscores the significance of government debt instruments in the financial landscape and their impact on the banking sector’s profitability

SUPPLEMENT

TENETS OF TRUST LEGACY

GLOBAL SOUTH ALERT: TRUST FROM SINCE MEDIEVAL ENGLAND, TO BEYOND AMERICAN DECLARATION OF INDEPENDENCE ON JULY 4, 1776.

TAGLINE: "TREASURE THE PEARL , RIDE SPECIAL MOBILITY."

LINK: iSpecial Mobility Ecosystem

VISION STATEMENT: "WHOLE BUSINESS SECURITIZATION (WBS) FOR AFRICA AND BEYOND."

🌐 iSpecial Mobility Ecosystem

OPINION: "COLLECTIVE INVESTMENT SCHEMES AS A PLAUSIBLE ALTERNATIVE TO NON-EFRIS AND/OR NON-TAX COMPLIANT BUSINESS VENTURES TYPICALLY DUBBED " THE INFORMAL SECTOR."

COLLECTIVE INVESTMENT SCHEMES AS PASSIVE INVESTMENT PRODUCTS FOR WEALTH CREATION

By: Josephine Okui Ossiya,

Chief Executive Officer,

Capitals Markets Authority

CMA PHOTO/COURTESY: Team Building Session conducted by the General Staff of the Capital Markets Authority - Uganda, Centre seated, Front Row (Sixth from the Left), Josephine Okui Ossiya, Chief Executive Officer, Capital Markets Authority – Uganda.

We all know the troubles that come with actively managing a business as an investment. As an owner operator, many responsibilities fall on your shoulders, from managing customer queries, suppliers and employees. Unfortunately, for individuals in fulltime employment, this can be an uphill task and could adversely affect the growth trajectory of one’s investment. Financial experts advise those found to be in such a position to consider passively investing, as a way of ensuring that they save and earn a decent return.

Rather than struggle with actively managing a business (as an investment), individuals can turn over the management of their investments to a third party. Collective investment scheme (CIS) can provide such a channel for one to invest passively, with management of their investment being undertaken by an investment professional. A CIS is a regulated investment product that involves several individuals contributing money into a common pool and having a licensed professional fund manager investing on their behalf based the documents that establish a CIS. In the contemporary financial landscape, collective investment schemes (CIS) have emerged as significant vehicles for both retail and institutional investors aiming to build wealth. These schemes, which pool money from multiple investors to purchase securities, typically offer a balance of growth, income, and risk when managed within the parameters of a well-defined investment strategy. In Uganda, there are 6 managers licensed by the Capital Markets Authority (CMA) to manage CIS. Investors in a CIS have a pro-rata claim on the income and value of the CIS.  Over 121,000 Ugandans have thus far invested in CIS to the tune of Ugx 2.5 trillion, which is barely scratching the surface. This in our estimate is expected to generate a minimum of Ugx 200 billion in wealth for investors this calendar year, who are currently able to invest as low as Ugx 10,000. This is consistent with the wealth creation message of His Excellency the President, who has preached about tapping into several avenues to create wealth.

Ugandans can invest in different types of CIS. Some of the CIS available include: money market funds that invest in interest bearing short-term financial instruments such as treasury bills; equity funds that invest in shares; bond funds that invest in corporate and treasury bonds; and balanced funds investing in both shares and bonds. Your investment goal will determine the most appropriate CIS to invest in. The main appeal of CIS is their ability to offer small or individual investors access to professionally managed portfolios with lower transaction costs than if they tried investing directly in the capital markets. It is critical that you engage your CIS manager, for professional advice on the most appropriate CIS for your situation.

Numerous benefits accrue to investors in CIS. CIS are regulated by CMA, which provides a level of protection to investors. The CIS Act and CIS regulations require that a custodian (usually a bank) holds assets under management by a CIS. Furthermore, the assets are legally owned by a person called a trustee for the benefit of investors. The Trustee is licensed by  the Capital Markets Authority.  This risk management framework ensures that CIS managers have no access to investor assets, guaranteeing their safety. Ugandans have previously fallen prey to financial scams and CIS provide a channel for investing in a financial product that is backed by a robust regulatory framework.

Additionally, CIS are liquid, meaning that they can be converted into cash with a lot of ease. An investor in a CIS can access their investment after filling in a redemption form in a period of between 24-48 hours. In more developed markets, CIS usually compete with banks for deposits as they have more attractive returns compared to holding money in a savings account at a bank.

The presence of a professional manager undertaking investing on behalf of investors allows them to earn a return passively creating wealth, while also engaging in other activities such as being a full-time employee. CIS invest in a portfolio of securities providing diversification enabling an investor to gain exposure to a wide variety of underlying securities, rather than assembling an investment portfolio on their own, which could be an uphill endeavor if done alone.

CIS have a beautiful aspect about them referred to as compounding. In very simple terms, compounding speaks to earning interest not only on the original amount invested (principal) but also on earnings from the original amount. An investor who holds CIS units, which accrue a return, is able to earn a return on the earnings made. The more money invested and the longer the period invested, the higher the compounding of income. CIS can thus be a powerful tool for creating wealth.

I know that the question on the minds of readers of this piece is, how do I start the investment journey through CIS? CMA has licensed CIS managers to operate CIS. Visiting the CMA website for a list of licensed CIS managers and licensed CIS schemes should be the first step. You may do your own due diligence as an individual before selecting a CIS manager. However, licensing by CMA is proof-enough that prior vetting has been undertaken by a public interest entity on behalf of the public, hence the CIS managers licensed by CMA are equally competent to provide you the CIS management service.

For Details, Click following Link: The Capital Markets Authority – Uganda annual report for the fiscal year 2022/23.

The next step would be opening an account with a CIS manager of your choice, depositing funds with the custodian bank and you are ready to start your journey as a CIS investor. Should you need access to your investment, We all that is required is for you to fill in a redemption form and you will have funds between 24-48 hours.

In conclusion, through CIS, you can passively create wealth in a safe, regulated environment. With the adult population in Uganda currently estimated at 24 million and only 121,000 having invested in through a CIS, the potential remains immense. CIS can provide an investment vehicle to meet your wealth creation needs and should be given serious consideration.

SUPPLEMENT

TENETS OF TRUST LEGACY

GLOBAL SOUTH ALERT: TRUST FROM SINCE MEDIEVAL ENGLAND, TO BEYOND AMERICAN DECLARATION OF INDEPENDENCE ON JULY 4, 1776.

TAGLINE: "TREASURE THE PEARL , RIDE SPECIAL MOBILITY."

LINK: iSpecial Mobility Ecosystem

VISION STATEMENT: "WHOLE BUSINESS SECURITIZATION (WBS) FOR AFRICA AND BEYOND."

🌐 iSpecial Mobility Ecosystem

ETHICS & INTEGRITY : " THINK LIKE A LAWYER OR THINK LIKE A SAINT!?"

Shonubi, Musoke & Co. Advocates win big at prestigious IFLR Africa Awards

Dr Alan Shonubi, a senior partner at Shonubi, Musoke & Co. Advocates receives a lifetime achievement award at the IFLR Africa Awards held in Johannesburg, South Africa. Looking on is former UBL MD Nyimpini Mabunda.

matookerepublic.com, May 14, 2024, 1:08 PM | Celebrated top city law firm Shonubi, Musoke & Co. Advocates has started the year on a high note claiming a treble of accolades at the first ever in-person International Financial Law Review- IFLR Africa Awards held in Johannesburg, South Africa on 11 April 2024. IFLR1000 is a leading international legal market research product specialised in ranking financial and corporate law firms and lawyers.

According to the IFLR website, they help consumers of legal services make informed strategic decisions when hiring external counsel. They annually rank close to 5,000 law firms and more than 21,000 lawyers across 12 practice areas and 250 jurisdictions. Uganda is one of these jurisdictions.

The first in-person Africa Awards dinner welcomed legal practitioners from across the continent to celebrate and acknowledge the most impressive achievements of the legal community in Africa. The event was held at the stylish Protea Hotel Johannesburg Balalaika and was the fourth edition of the IFLR Africa Awards. The event saw nearly 100 attendees come together to celebrate the most legally innovative financial and corporate deals, teams and firms as well as outstanding individuals over the past 12 months. The winners were decided based on a rigorous research process that involved reviewing hundreds of entries and interviews from across the African region and beyond.

IFLR’s awards are unique in the market for focusing on legal innovation through deal making and celebrating work that improves the cross-border investment environment. The 2024 Africa Awards highlight some of those most impressive legal achievements of 2023 across the continent.

Dr Alan Shonubi, a senior partner at Shonubi, Musoke & Co. Advocates gives an acceptance speech after receiving a lifetime achievement award at the IFLR Africa Awards held in Johannesburg, South Africa. Shonubi, Musoke & Co. Advocates won two other accolades as a firm.

Alan Shonubi, the senior partner at Shonubi Musoke & Co. Advocates in Kampala, won the Lifetime Achievement Award for his influence on legal practice, deal making and the cross-border environment and leadership/mentorship of the next generation of lawyers. This was the highlight award of the evening. Past winners of the award are Kojo Bentsi-Enchill, Iqbal Rajahbalee and Gbenga Oyebode.

Dr. Alan Shonubi, a senior partner at Shonubi, Musoke & Co. Advocates receives a lifetime achievement award at the IFLR Africa Awards held in Johannesburg, South Africa.

Speaking to IFLR after winning the award Shonubi stated, “I made a blind decision in 1978 to study law when I was unsure of what else to do. I made another decision in 1987 to start a law firm from scratch when I had no family members who were lawyers. I met a man in 1990 who I decided to make my mentor. He and his family encouraged and supported me in my venture. The award means I made three of the best decisions of my life”. He is committed to continue mentoring the young lawyers.

Shonubi Musoke & Co. Advocates was crowned National law firm of the year – Uganda, in addition to winning the much-coveted Loan deal of the year in respect of a receivables-based secured syndicated facility to M-Kopa Uganda Limited. This syndicated financing comprised parallel dual currency (Uganda Shillings and US Dollars) receivables-based secured facilities. The lending was backed by a mix of development finance and commercial lenders, tied together through complex intercreditor agreements. The dual-currency structure was achieved through a swap arrangement, while the financing was guaranteed by entities in the UK and Delaware. The use of such a structure is highly novel for a borrowing base deal, where lenders are lending against a pool of receivables. The complex deal, which marked the largest sustainability-linked syndicated facility in Sub-Saharan Africa in 2023, has since been replicated in other jurisdictions, including Ghana and Nigeria.

Representatives from Shonubi, Musoke & Co. Advocates pose for a photo with some of the awards the firm won at the IFLR Africa Awards held in Johannesburg, South Africa.  Shonubi, Musoke & Co. Advocates won a total of three awards.

Transactions of this nature would normally have a multiplicity of parties including mandated lead arrangers, lenders, borrowers, guarantors, agents and various local and international counsel acting for the array of the parties. Shonubi Musoke & Co. Advocates together with Allen & Overy, a London-based law firm (through its South African office), acted for the arrangers, agents and lenders. The lending institutions involved included Standard Bank of South Africa, Stanbic Bank Uganda, International Finance Corporation, Africagogreen Fund for Renewable Energy and Energy Efficiency, Investments S.C.S. and Nithio FI.

ALN, whose local member is another top tier law firm-MMAKS Advocates, won the award for Legal Network of the year.

REPOSITORY/SUPPLEMENT

PARIS-2024 – O-SERIES

TENETS OF TRUST LEGACY

GLOBAL SOUTH ALERT – AFRICA –  #01 : |O| TRUST FROM SINCE MEDIEVAL ENGLAND, TO BEYOND AMERICAN DECLARATION OF INDEPENDENCE ON JULY 4, 1776.

YouTube: Trust Presentation Link – Overview :Express Trusts Under Common Law (Part 1) ; (Part 2) ; (Part 3) ; (Part 4).

GLOBAL SOUTH ALERT – ASIA – #02:|O| BANK NOT A TRUSTEE OR FIDUCIARY  BUT SIMPLY A DEBTOR – The contract between a bank and a customer in the decision of the House of Lords in Foley vs Hill (1848) 2 HL Cas 28

GLOBAL SOUTH ALERT – AUSTRALIA – #03:|O | MORTGAGEE (TYPALLY A LENDER SUCH AS A BANK) NOT A TRUSTEE FOR THE MORTGAGOR (BORROWER) –"It is well settled that a mortgagee is not a trustee of a power of sale for the mortgagor. Once the power has accrued, the mortgagee is entitled to exercise it for his own purposes whenever he chooses to do so. It matters not that the moment may be unpropitious and that by waiting a higher price could be obtained. He has the right to realize his security by turning it into money when he likes. [ See: Cuckmere Brick Co. Ltd Vs Mutual Finance Ltd [1971] Ch. 949 ]

GLOBALSOUTHALERT – EUROPE – #04: |O| #BANK STANDS TO LOOSE FOR FAILURE TO KEEP PROPER RECORD OF CUSTOMER ACCOUNT TRANSACTIONS – "Any bank which fails to keep proper records of accounts cannot sustain an ascertainable claim against a customer. ( See: Ezekiel Osugo Angwenyi & Another Vs. National Industrial Credit Bank Limited (2007) eKLR ]"

In Excellent Assorted Manufacturers Ltd & Anor Vs DFCU Bank Limited & Anor, Pg 81, Hon. Mr. Justice Boniface Wamala had the following important observation on that point as cited below:

. 

"It appears to me that the use of the URA receipt to explain this transaction is an attempt by the 1st Defendant to use any available documents that appear to be proximate in time to explain certain transactions even when there is no nexus between the documents. I find this trend unacceptable. Simply because a payment was done around the time the queried transaction was effected cannot be used as evidence to explain the query. Relying on a decision to which this court was referred by Counsel for the Plaintiffs, I agree that a Court of law cannot determine issues of accounts based on guesswork. 

GLOBALSOUTHALERT – NORTH AMERICA – #05:|O| #LESSEE (#BANK/END-USER) PRECLUDED FROM PASSING TITLE TO A THIRD PARTY WITHOUT PRIOR WRITTEN CONSENT FROM #LESSOR/ (#TRUSTEE/ OWNER) – Meera Investments Limited Vs DFCU Bank Limited & Anor, Civil Suit 948 of 2017 [2023] UGHCLD 340 (20th October 2023), Before: Hon. Mr. Justice Tadeo Asiimwe, CLICK LINK FOR DETAILS =>> : https://lnkd.in/eRHFGGPt

Extract:

James Magode Ikuya Vs Londa Mbarak Abdullah (HCT-04-CV-CA 87 of 2012 [2015] UGHC

"the lessee shall not without the consent of the lessor in writing deal in any way with his/her interest in the land before the lease is extended to the full term of 49 years. Paragraph 3 of the said lease provides for the need for a consent to "transfer". The lease concluded a sale and transfer of the leasehold land without seeking and obtaining the requisite consent." – Hon. Mr. Justice Henry I. Kawesi

RELATED UNITED STATES (USA) PRECEDENT:

Extract:

Cooperider Vs. Myre, 37 Ohio App. 502, 505, 175 N.E. 235, 236 (1930)

"It is no doubt true that possession of personal property is some evidence of ownership, and may be sufficient in a given case to protect one dealing with the property as that of possessor. But mere possession, unaccompanied by other circumstances giving it a specific character or creating an estoppel, is not such evidence of ownership as to prevail against the true owner, except in case of negotiable instruments, mortgaged chattel property, or that sold under conditional sales agreements."

"The rule that one cannot be divested of his property without his consent, and the principle that one cannot possess or convey a greater title than he himself has, controls all questions arising as to personal property attempted to be transferred or as to lien created thereon. The effect of possession as evidence of ownership is subordinate to these principles, save in exceptions noted. The mere fact of one putting property into the charge or custody of another does not divest the possession of the true owner; the legal possession still remains  in the owner, for the agent, bailee or lessee thereof can have no greater title than his grant provides." — Repository Citation: https://lnkd.in/e2R5fZUv

#TrustLawAlert : RENTAL CAR — ASSET BACKED SECURITY (ABS) TRANSACTION

"Most rental car fleet transactions are structured as a true lease (operating lease). In a true lease transaction, the vehicles are titled in the name of the Special Purpose Entity (SPE) with the Indenture Trustee/Custodian named as lienholder on the certificate of title. This will enable the transaction to be structured to be bankruptcy remote so that the fleet of assets can be liquidated in the event of a bankruptcy of the rental car company without a competing claim being made. on behalf of the bankrupt party's creditors." — https://lnkd.in/etmFKd-i

GLOBALSOUTHALERT – SOUTH AMERICA – #06 |O| HUMONGOUS LIQUIDITY TURNOVER : TRUST/FIDUCIARY PATIENT CAPITAL HANDSHAKE WITH ONE OR MORE BORROWER INTERMEDIARY/IES BOOSTS PLOUGHED BACK EARNINGS FOR PARTICIPATING FINANCIAL INSTITUTION/S ( TYPICALLY ONE OR MORE COMMERCIAL BANK/S). For Exhibit (1) [ Mortgage Backed Security (MBS) ]   , Please Visit: Fannie Mae : Financial Reports – FY 2021 | For Exhibit (2) [Asset Backed Security (ABS) ] ; Please Visit : Ford Variable Funding Note Prospectus, June 26, 2009 |

TAGLINE: "TREASURE THE PEARL , RIDE SPECIAL MOBILITY."

LINK: iSpecial Mobility Ecosystem

VISION STATEMENT: "WHOLE BUSINESS SECURITIZATION (WBS) FOR AFRICA AND BEYOND."

🌐 iSpecial Mobility Ecosystem