Outcome 3

Apply securities for lending principles and procedures.

Outcome 3 looks at the role that security plays in the lending process.

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Learners should be able to identify whether the lender would request security or not in a given situation and to be able to explain why they reach that decision. Where they decide that security is required, they should be able to identify which assets should be used and what the procedures are for completing the security. Learners also have to know how security will be released once the borrowing is repaid.

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Learners should become familiar with relevant terminology and should make use of this.