Section 10 — Forms of security

(1) Security required by a bank for the purpose of any loan under this Act may be one or more of the following that is to say:

(a) a charge on land in which the borrower holds a legal interest or a right to farm, or a charge on the crops on such land;

(b) a charge on the movable property of the borrower;

(c) a life assurance policy, a promissory note or other negotiable security;

(d) stocks and shares;

(e) a personal guarantee;

(f) any other security acceptable to the bank.

(2) The requirement of security for a loan specified under the provisions of subsection (1) of this section may be waived in the case of a loan of the sum of ₦5,000.00 or below granted to a small scale farmer.