Governor and Company of the Bank of Scotland v Dunedin Property Investment Co Ltd
Governor and Company of the Bank of Scotland v Dunedin Property Investment Co Ltd
- 1998
- Scottish Civil Law Reports [1998] SCLR 531-555(25) .
"Governor and Company of the Bank of Scotland v Dunedin Property Investment Co Ltd" CS 1 May 1998. The defendant company D borrowed £10,000,000 from the bank by issue of debenture loan stock for ten years on fixed interest. D was entitled to early redemption by purchasing stock subject to bank being fully reimbursed `for all costs, charges and expenses incurred in connection with the stock`. The bank hedged its position by entering into short-term loans and long-term interest rate swap agreement. D purchased stock early and the the bank maintained that D was liable for costs incurred by the bank in breaking swap contract early. Held, appeal allowed.
BANK LOAN
BANK OF SCOTLAND V DUNEDIN PROPERTY INVESTMENT CO LTD
EXPENSES
LIABILITY
"Governor and Company of the Bank of Scotland v Dunedin Property Investment Co Ltd" CS 1 May 1998. The defendant company D borrowed £10,000,000 from the bank by issue of debenture loan stock for ten years on fixed interest. D was entitled to early redemption by purchasing stock subject to bank being fully reimbursed `for all costs, charges and expenses incurred in connection with the stock`. The bank hedged its position by entering into short-term loans and long-term interest rate swap agreement. D purchased stock early and the the bank maintained that D was liable for costs incurred by the bank in breaking swap contract early. Held, appeal allowed.
BANK LOAN
BANK OF SCOTLAND V DUNEDIN PROPERTY INVESTMENT CO LTD
EXPENSES
LIABILITY