Thank you for your submission. I have had a look at it, so now it's time for us to go through it.

In terms of the type of security the bank can take for securing the loan, there are certain types
of security.

Immovable property
The type of security an immovable property can include land or building.

Moveable property
These are assets that can be moved from one place to another and these can be something like
vehicles.

Another form of security that can be taken are shares. Shares in the business that our company
or our client is running.

Question 2: the steps in which the bank would be implementing the security. In order to
implement and/or register the security, the bank would need to register mortgage bond over
the immovable asset. So, the bank would need to approach the Deeds office in order to register
mortgage bond over the land or the building that our client owns. If the bank takes security
over movable property, the bank would need to register either a Special Notarial Bond or a
General Notarial Bond.

The General Notarial Bond is over a general set of assets without describing what type of asset
that the bank can take that security over. In terms of a Special Notarial Bond, the bank would
take security over specific assets and would need to describe those assets specifically and in
particular detail. In order to take security over shares, we would prepare a Pledge and Cession
agreement in terms of which that agreement would then allocate or allow the bank to take
security over the relevant shares.

The risks associated with each of these securities

In terms of Immovable property and General and Special Notarial Bonds, these would need to
be registered at the Deeds office. The timing constraints that the Deeds office experiences is a
risk to the transaction in that it takes a while to register those bonds with the Deeds office. In
terms of security over shares, if you take the wrong type of security in that you take an out and
out session, the client would have to deliver those shares to the bank. Whereas if you take
Pledge securitatem debiti, the shares remain with the client and all the bank has is a claim over
those specific shares. So, it is important to structure your security to make sure that the client
alleviates all these risks.

Thank you very much for your submission, it was a pleasure working with you. I look forward to
seeing you as a Banking and Finance lawyer in the near future.