Since its election, the current government has enthusiastically embraced the fintech sector and the potential that it offers and has repeatedly expressed its intention for Bermuda to be a significant centre for this industry. In furtherance of this goal, a significant part of the government's legislative programme for 2018 has been, among other things, the implementation of a comprehensive regulatory regime. The central pillar of this regime is the Digital Asset Business Act, which came into force on 10 September 2018.
Sometimes a person is asked by a family member or friend to act as guarantor on a mortgage or personal or business loan from a bank or other lender. However, in a worst-case scenario, acting as a guarantor can lead to financial hardship or even bankruptcy. Although the safest option may be not to sign a guarantee agreement at all, a potential guarantor can take steps to minimize the risk.
A first mortgage transfers the legal estate to the secured lender. The borrower has the right to occupy the home and to have it transferred back when the mortgage loan is repaid with interest. Second and subsequent mortgages transfer a home subject to the first mortgage. The first lender will already hold the legal estate in a borrower's home. Thus, second and subsequent secured lenders are entitled only to the equity of redemption.