''Royal Trust Bank v Buchler''
989
Year 989 (Roman numerals, CMLXXXIX) was a common year starting on Tuesday (link will display the full calendar) of the Julian calendar.
Events
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BCLC 130 is a
UK insolvency law case, which decided that before a creditor may enforce security, it must show it is appropriate to do so.
Facts
Mr Buchler's company borrowed £500,000 from
Royal Trust Bank
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. It purchased and refurbished some property to let it out again. The loan was secured by a charge entitling the bank to appoint a receiver. When an
administrator
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was appointed, he decided it would be best to go ahead letting the property and then sell. Letting failed. The administrator decided to sell. The property got £850,000, and the bank sought leave under the Insolvency Act 1986 s.11(3) (see now, Schedule B) to enforce its security.
Judgment
Peter Gibson J
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refused the bank leave. He held the bank failed to discharge its burden of showing a proper case to enforce security. The decision to delay the property's sale was a sound one, and if it was sold the bank could be paid in full. If the bank was allowed to appoint a receiver, costs would be increased, which would decrease assets available to all creditors.
See also
*
UK insolvency law
Notes
{{reflist, 2
United Kingdom insolvency case law
1989 in United Kingdom case law