MUNYANEZA NUNDI v. ACCESS BANK RWANDA LTD

MUNYANEZA NUNDI v. ACCESS BANK RWANDA LTD

Guarantors remain liable for the debt under the original guarantee since the amended loan agreement did not alter the guarantee terms, and notification was not required. Collateral sale did not reduce their liability as it was not conducted by the bank. Damages and legal costs imposed by lower courts are upheld.

Citation
RCOMAA 00090/2018/CA
Parties
Appellant: Munyaneza Félicien; Appellant: Mudenge Emmanuel; Respondent: Access Bank Rwanda Ltd
Court
Court of Appeal
Jurisdiction
Rwanda
Judgment Date
26 July 2019
Case Number
RCOMAA 00090/2018/CA
Procedural Posture
Commercial Appeal / Final Appellate Judgment
Outcome
appeal dismissed
Legal Topics
Personal Guarantee, Loan Agreement Amendment, Surety Liability, Notification Requirements, Collateral Sale
Source Language
rw
Contract Law Banking Law Guarantee Law Personal Guarantee Loan Agreement Amendment Surety Liability Notification Requirements Collateral Sale

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Parties

Munyaneza Félicien

Appellant

Mudenge Emmanuel

Appellant

Access Bank Rwanda Ltd

Respondent

Procedural Posture

Commercial Appeal / Final Appellate Judgment

Legal Issues

  1. 1 Whether guarantors are liable for amended loan agreements without explicit notification
  2. 2 Whether sale of collateral reduces the debt owed by guarantors
  3. 3 Entitlement to damages and legal costs

Ratio Decidendi

Guarantors remain liable for the debt under the original guarantee since the amended loan agreement did not alter the guarantee terms, and notification was not required. Collateral sale did not reduce their liability as it was not conducted by the bank. Damages and legal costs imposed by lower courts are upheld.

Court Disposition

appeal dismissed

Orders

  • Uphold lower court judgment RCOMA 00723/2017/CHC/HCC
  • Order appellants to pay Access Bank Rwanda Ltd 700,000 Frw in attorney fees