Accommodation loan

Accommodation loan

A legal agreement signed by two parties whereby one of the co-signers guarantees credit liability for the other co-signer.  Accommodation loans, often called accommodation endorsements or bills, allows the guarantor to add strength to the creditworthiness of the other party.  If the receiving party defaults on its debt, the guarantor is then responsible for the debt of the other party. See: Covenant
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As part of the deal, Yeung also agreed that BIHL would pay around PS160,000 as an 'accommodation loan' so Pannu could buy a property in the UK and he also approved the payment of 'reasonable expenses'.
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The statement also claimed that during the search, "incriminating evidence" was unearthed pertaining to modus operandi establishing the introduction of accommodation loans by the group, which have been found to be bogus.
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In addition, company maintained accommodation would go some way towards incentivising staff (or, alternatively, the offering of housing accommodation loans or allowances), particularly against the backdrop of ever increasing rental and real estate in the UAE.
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As for mortgages, the Directive will cover consumer credit plus a mortgage but standard accommodation loans continue to be excluded from the scope of the Directive;
CONSUMER CREDIT: MEPS SINK "BURDENSOME" COMMISSION PROPOSAL

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