OMNIBSIC BANK GHANA LIMITED VS MOUNTCREST UNIVERSITY COLLEGE LIMITED & ANOR

The Applicant seeks by the present originating notice of motion, the following orders: a. A warrant to the Ghana Police Service to assist the Applicant Bank to possess and realise H/No 90 Sunyani Avenue, Kanda Housing Estate and landed property on Plot No. 173A Kanda Housing Estates, Accra Parcel No. 85 with GA 22993 land title certificate number) as loan securities; b. Order of reserved prices for the auction sale of House Number 90 Sunyani Avenue, Kanda Housing Estate and landed property on Plot No. 173A Kanda Housing Estates, Accra Parcel No. 85 with GA 22993 land title certificate number) as loan securities; c. And for such further order(s) as this Honourable court may deem fit.

The claim of the Applicant is premised on the fact that the 1st Respondent, a limited liability company registered under the laws of this country and engaged in the provision of educational services had applied for a loan of Two Million, Six Hundred Thousand Ghana cedis(GH¢2, 600, 000. 00) by a letter dated August 23, 2016 for the purchase of a House on Plot No. 173A at Kanda Housing Estate (see Exhibit “A”). The request was granted and per the terms of security conditions of the offer letter, the Applicant mortgaged the property in respect of which the loan was to be acquired, that is, the House on Plot No. 173A as security for the repayment of the loan and further assigned their interest in the said property to the Applicant Bank (see Exhibits “C”and “D”). As additional security for the loan, the 2nd Respondent executed a director’s guarantee to be personally responsible for the repayment of the loan facility upon the 1st Respondent’s default.

The loan had a repayment term of thirty-six (36) months at an agreed interest rate of 34% per annum.

It is the further claim of the Applicant that due to some challenges in the repayment of the loan, the 1st Respondent subsequently requested for a new repayment schedule by a letter on March 20, 2017, a copy of which is marked as Exhibit “G” and same was granted, per the Exhibit “H”). According to the Applicant, it went as far as to freeze the interest on the loan from November 2016 to enable the 1st Respondent’s business become fully functional.

In addition, another overdraft facility of Four Hundred and Fifty Thousand Ghana cedis(GH¢450, 000. 00) was requested for by the 1st Respondent and granted by the Applicant Bank with an interest rate of 30% per annum as evidenced by Exhibit “J”. As security for this second overdraft facility