The law relating to debentures and their realisation in Tanzania: the case of CRDB Bank Limited

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University of Dar es Salaam
Leading and borrowing business id crucial in the Tanzanian economy. Investors who wish to invest in various sectors of the economy need to raise enough capital and, one of the ways of obtaining capital is to borrow from banks and other financial institution. In leading money to investors, it is prudent to obtain security as a form of assurance should untoward and unexpected development occur to jeopardize the safety of the advance. Essentially, security is one of the accepted basic principles of the lending. There are various methods by which a banker may obtain security and one of them is a debenture. This work is based on the law relating to debentures and their realization with specific reference to the CRDB Bank Limited. It is shown in this study that debentures are a class of security issues by companies, co-operatives societies and other body corporate in favour of bankers and other lenders, which normally give a fixed charge on the company’s fixed assets and what is known as floating charge on the rest of its undertakings. Further, it is shown that the CRDB Bank Limited has been accepting debentures as security since its reconstitution in 1984. That, the CRDB was solely owned by the government until it was privatized in 1994. During the time when CRDB was under the ownership of the government, it was not autonomous in its operations. It is also submitted that,after the privatization of the CRDB, it became independent of any interference from the government in accepting and realizing debentures. The legal and credit departments of the bank currently abide by the basic principles of lending and realisation of the debentures without interference.
Available in print form, Eat Africana Collection, Dr. Wilbert Chagula Library,(THS EAF KRD.T34M52)
Debentures, Law, CRDB Bank Ltd, Tanzania
Michael, O. (2004)The law relating to debentures and their realisation in Tanzania: the case of CRDB Bank Limited. Masters dissertation, University of Dar es Salaam, Dar es Salaam.