I have a bond (bond A) that was obtained post NCA (2009) which as far as I can tell could constitute reckless lending.

At the time of application I revealed to the bank that I had a suretyship elsewhere, which would technically mean that by giving me this bond, that they definitely extended credit recklessly.

I recently again applied for credit with this same institution which was denied. I asked why and they cited the suretyship. I pointed out that this suretyship didn't pose a problem when obtaining bond A. They are now looking into this.

I am comfortably servicing bond A.

My question is: If the bank realizes that they shouldn't even have given me Bond A, and that it could technically constitute reckless lending, can the bank come back two years later and cancel bond A (thereby forcing me to settle the full balance, which I obviously could only do by selling the property)?

I don't want to sell the property, am affording it, and have no intention of pursuing a reckless lending case against them.

The suretyship cannot be released at this stage.