Sometimes, to induce potential borrowers/debtors to obtain credit, lenders (or sellers) will agree to charge no interest on what is loaned, or, the unpaid price for a credit sale of goods and/or services.
Financial institutions need to be mindful of the effect of the engagement of financial advisors with respect to their special loan clients.
Hello everyone.
Except for a brief addendum to an order made in a criminal matter, the Court of Appeal only released civil law decisions this week, which is rare. Topics covered included whether or not leave to appeal a vesting order made on a receivership sale under the Bankruptcy and Insolvency Act is required (it is), an ironic case in which a lawyer initially resisted a professional negligence claim for missing a limitation period by arguing the limitation period had been missed (nice try), insurance law and adjournments.
Trust claims against a borrower’s assets are something that no secured creditor wants to be confronted with. Such claims are often unexpected because they are, for the most part, undetectable. They lurk in the shadows, out of the reach of traditional due diligence measures and PPSA searches. As a result, even the most prudent of creditors can sometimes find themselves facing these undocumented and unquantifiable claims.
On April 20, 2016, the Canadian federal government introduced Bill C-15, which is legislation that provides for, among other things, a bank recapitalization or “bail-in” regime for domestic systemically important banks (“D-SIBs”).
BAIL-IN
Recent Developments
When Michael Howard invested in the Great Southern 2006 Organic Olives Income Project, he was confident it would prove to be a fine investment. So confident, that he borrowed the total cost from Great Southern Finance (GSF).
Little did he expect that 12 years later he would be defending a loan recovery action by the Bendigo and Adelaide Bank Limited (Bendigo Bank) for a large debt in a project which never paid a return and was wound up early because it had run out of funds.
Making sense of the purchase money security interest (PMSI) priority provisions in the Personal Property Securities Act 2009 (Cth) (PPSA) can be challenging for financiers and insolvency practitioners tasked with assessing the merits of competing security interest claims.
In Ramsay Health Care Australia Pty Ltd v Compton, the High Court of Australia considered the Bankruptcy Court's discretion, under s52 of the Bankruptcy Act 1966 (Cth), to go behind a judgment to satisfy itself that a debt is truly owing before making a sequestration order against a debtor.
The Bendigo and Adelaide Bank is progressing with loan recoveries against investors in Great Southern Plantations with an outstanding loan.
It has a head start in loan recoveries against the members of the class action (the Group Members) because in the settlement deed approved by Justice Croft on 11 December 2014 it states that each of the Group Members “acknowledges and admits their liability to the BEN Parties to pay the Loan Balance under their Loan Deed”.