Section 12: Inadequate securities, etc.

(1) Where-
(a) the information and details on the security pledged for the loan and filed before the Court is impossible to locate; or
(b) no security is pledged at all; or
(c) the identity of the debtor is difficult to locate; or
(d) the debtor is found to be non-existent, fake or fictitious or in any way unidentifiable,
the Court shall hold liable, for the outstanding loan and interest thereon, the directors, shareholders, partners, managers, officers and other employees of the failed bank who in the performance of their duties were found to have been connected in any way with the granting of the loan which has become irrecoverable.
(2) The Court shall proceed to recover from the person referred to in subsection (1) of this section, jointly and severally the outstanding loan and interest thereon in accordance with the provisions of this Act, unless the Court is satisfied that the debt was incurred with the consent of the director, partner, shareholder, manager, officer or employee and that he exercised all such diligence as he ought to have exercised having regard to the nature of his functions and all the circumstances of the case.