Bank loan

Sureties will lose property after failing to pay $3m bank loan – DailyNews

Dionne Kanyowa

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Sureties for a local firm, Select Healthcare, are at risk of losing their property after failing to repay a $3.6 million NMB bank loan after agreeing to a settlement plan.

Judge Samuel Deme ordered Tafadzwa P and Biggie Magarira to repay the loan and also ordered that their Pomona-based property be seized and sold for the recovery of bank money plus court costs in a judgment by fault. “The defendants jointly and severally paying the other to be absolved will pay to the plaintiff, the sum of $3,647,380.41 which is the principal debt and the accrued interest on the loan facility that the 1st defendant took from the plaintiff in September 2020.

“An order that property number 361 Pomona Township, Harare, measuring 2,818 square meters in the name of Biggie Magarira and Tafadzwa Perpetua Magarira, shall be declared enforceable and shall be sold by the plaintiff by private treaty to recover his rights including legal costs”, governed Dème.
Sometime in September 2020, Biggie and Tafadzwa signed up as guarantors and sureties for a $3 million loan that was taken out in Select Healthcare’s name with the bank. They also pledged their Pomona property as collateral.

The terms of the loan agreed to by the parties were that the outstanding loan balance should never exceed $3 million.
Additionally, interest remaining unpaid on the due date would be added to the principal amount and would also earn additional interest as if it were part of the principal amount of the loan.

However, Biggie and Tafadzwa did not repay the loan as it fell due even after agreeing to settle the loan payment out of court through a payment plan. This then led to the bank serving the couple with a summons the following year in September demanding repayment of their loan with interest as well as the seizure of the property which had been pledged by the duo. The couple failed to respond to the summons within the time limit, prompting the bank to seek default judgment, which was granted.