BOE Bank Ltd. v Bassage (445/04)
BOE Bank Ltd. v Bassage (445/04) [2006] ZASCA 50; 2006 (5) SA 33 (SCA) ; [2006] 4 All SA 105 (SCA) (31 March 2006)
The Supreme Court of Appeal held that the appellant’s election to rely solely on its security in terms of section 89(2) of the Insolvency Act did not extinguish the underlying debt or its claim against the surety for the shortfall. The election merely limited the appellant’s participation in the insolvent estate to the value of the security and relieved it from liability for sequestration costs, but did not amount to a waiver or abandonment of the balance of the debt. The suretyship remained enforceable for the balance not recovered from the principal debtor, as the respondent had waived the…
Source excerpt
- Suretyship
- Insolvency Act Section 89
- Liquidation And Distribution Account
- Waiver Of Debt
- Accessory Liability
- Companies Act Section 366