The Path from Default to Recovery: 90 Day’s Notice of Default, 40- Days Notice of Sale and 45 Days Redemption Notice
The Path from Default to Recovery: 90 Day’s Notice of Default, 40- Days Notice of Sale and 45 Days Redemption Notice
In the world of secured lending, the relationship between a chargor and a chargee often begins on a foundation of mutual trust and goodwill. It starts with the issuance of a letter of offer, where the chargee extends financial support to the chargor, often to fulfill aspirations such as acquiring property, financing a business, or addressing other financial needs. Upon acceptance of the terms, the arrangement solidifies through the creation of a charge with a property as a secuity, a legal instrument that binds the parties to their obligations. The execution of the charge symbolizes an agreement rooted in good faith, with both parties intending to uphold their respective commitments.
However, this harmony can be disrupted when the chargor defaults on their obligations, such as failing to make periodic payments or honor terms under the charge. Default represents a pivotal moment in this relationship, marking a shift from collaboration to contention. The chargee, faced with mounting losses, may seek to exercise their statutory power of sale, a remedy provided under Kenyan law to recover the outstanding debt through the sale of the charged property.
This legal update provides the necessary legal steps that a chargee must follow before exercising its statutory power of Sale. Click here to access the full update on The Path from Default to Recovery.