{UAH} For those who didnt understand Ham vs DTB case, here is the breakdown

For those who didnt understand Ham vs DTB case, here is the breakdown

1. Ham borrows U$50M and Ugx 100B

2. DTB Uganda books the loan in DTB Kenya books like many Ug banks do because of their limited capital abilities

3. Ham signs the agreement reading DTB Kenya in 2011.

4. Ham starts paying well his loan (obviously system deducting monthly installments as per the offer letters.

5. Ham goes to LDC studies law since he was in borrowing business he concentrated on laws relating to loan businesses.

6. He realizes a loophole in the agreements (reading DTB Kenya yet he applied for a loan in DTB Uganda).

7. He withdraws all his cash from DTB and defaults installments as they fell due.

8. DTB Uganda puts Ham's collateral on market to recover the loan funds.

9. Ham runs to court (reasons he's referred to as the applicant or plaintiff) claiming the bank deducted his money from his account without his consent (the installments that the bank had recovered at first before the loan went bad) i.e $23M and Ugx 34B.

His biggest score in this case:

1. DTB Kenya has no license from BOU to do financial lending business in Ug neither does it pay taxes in ug so the loans extended to Ham by DTB Kenya are settled at law level so no obligation on Ham to pay them.

2. DTB Ug did not register DTB Kenya as the agent neither did DTB Kenya register DTB Ug as its agent as per Kenyan banking laws.

3. Therefore judgement was that both DTBs shld repay Ham Us$ 23M and Ugx 34B which he had repaid on the loan with interest of 8%.

4. BOU and UBA gets worried as the business of banks booking loans in foreign banks is the order of the day in the sector so many borrowers may recheck their agreements and run to courts.

Have you checked your loan agreement?

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"When a man is stung by a bee, he doesn't set off to destroy all beehives"

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