Section 56 Mortgage and Property Law of Lagos State

Section 56 of the Mortgage and Property Law of Lagos State 2010 is about Regulation of mortgage promotion. It provides as follows:

(1) A registered mortgage institution operating in the State shall take reasonable steps to ensure that, for any mortgage business promotion within the State and booklet issued to mortgage customers –

(a) it does not omit any matters the omission of which causes the housing and credit promotion not to be clear, fair and misleading;

(b) if it describes a feature of a secured loan, it gives no less prominence to the possible disadvantages as to the benefits;
(c) it uses plain and intelligible language, and is easily legible;

(d) the accuracy of all statements of fact in it can be substantiated;
(e) its promotional purpose is not in any way disguised or misrepresented;

(f) any statement of fact, promise or prediction is clear, fair and not misleading and any relevant assumptions are clearly and prominently disclosed;
(g) any statement of opinion is honestly held and unless consent is impracticable, given with the consent of the person concerned;

(h) the facts on which any comparisons or contrast is made as verified, or alternatively, that relevant, that relevant assumptions are prominently disclosed
and that the comparison or contrast is presented in a fair and balanced way, which is not misleading and includes all factors which are relevant to the comparisons or contrasts;

(i) it does not contain any false indications in particular as to –
(i) firm’s resources and scale of activities,
or
(ii) the scarcity of a secured loan;

(j) it does not include any reference to approval by any Federal, State or Local Government body, unless such approval has been obtained in writing from that body.

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