Where Title has been issued then the Bank has to use this Memorandum of Charge which does not involve any transfer of Title or Benefits as in Assignment above. By using a charge, the Bank is required to seek the Collector’s authority to auction the property ( Section 111 of the Sabah Land Ordinance – ‘SLO’). The Banks will always ask you to pre-sign this Memorandum in advance, if you do not have Title document issued. While Charge is explicitly recognised in the Sabah Land Ordinance, the same is not true for a mortgage, hence the difference between the two will also determine how the bank will recover its debt when you default.