Debt Instruments in UK Law

Leading Cases
  • Re Sigma Finance Corporation (in Administrative Receivership)
    • Supreme Court
    • 29 Octubre 2009

    Sigma financed its investments over a 13 year period by debt securities issued or guaranteed by it. It entered into liquidity facilities intended to hedge against market liquidity risks. It entered into financial instruments intended to hedge against currency and interest rate risk. Others provided liquidity facilities, or entered into financial hedging instruments.

    Where a security document secures a number of creditors who have advanced funds over a long period it would be quite wrong to take account of circumstances which are not known to all of them. In this type of case it is the wording of the instrument which is paramount. The instrument must be interpreted as a whole in the light of the commercial intention which may be inferred from the face of the instrument and from the nature of the debtor's business.

  • Owen (Edward) Engineering Ltd v Barclays Bank International Ltd
    • Court of Appeal (Civil Division)
    • 20 Julio 1977

    A bank which gives a performance guarantee must honour that guarantee according to its terms. It is not concerned in the least with the relations between the supplier and the customer; nor with the question whether the supplier has performed his contracts obligation or not; nor with the questionwhether the supplier is in default or not. The bank must pay according to its guarantee, on demand, if so stipulated, without proof or conditions.

  • Richard Dale Agnew and Another v The Commissioner of Inland Revenue and Another
    • Privy Council
    • 05 Junio 2001

    Once these have been ascertained, the Court can then embark on the second stage of the process, which is one of categorisation. If their intention, properly gathered from the language of the instrument, is to grant the company rights in respect of the charged assets which are inconsistent with the nature of a fixed charge, then the charge cannot be a fixed charge however they may have chosen to describe it.

  • Lipkin Gorman (A Firm)(Original Appellants and Cross-Respondents) v Karpnale Ltd (Formerly Playboy Club of London Ltd) (Original Respondents and Cross-Appellants)
    • House of Lords
    • 06 Junio 1991

    At present I do not wish to state the principle any less broadly than this: that the defence is available to a person whose position has so changed that it would be inequitable in all the circumstances to require him to make restitution, or alternatively to make restitution in full.

  • Carreras Group Ltd v Stamp Commissioner
    • Privy Council
    • 01 Abril 2004

    Whether the statute is concerned with a single step or a broader view of the acts of the parties depends upon the construction of the language in its context. But ever since Ramsay Ltd v Inland Revenue Commissioners [1982] AC 300 the courts have tended to assume that revenue statutes in particular are concerned with the characterisation of the entirety of transactions which have a commercial unity rather than the individual steps into which such transactions may be divided.

  • Rainy Sky SA and Others v Kookmin Bank
    • Court of Appeal (Civil Division)
    • 27 Mayo 2010

    Unless the most natural meaning of the words produces a result which is so extreme as to suggest that it was unintended, the Court has no alternative but to give effect it its terms. To do otherwise would be to risk imposing obligations on one or other party which they were never willing to assume and in circumstances which amount to no more than guesswork on the part on the Court.

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Books & Journal Articles
  • Securitisation, Money Laundering and Fraud
    • Nbr. 1-2, February 1997
    • Journal of Money Laundering Control
    • 148-153
    Securitisation is the process of raising finance by the issuing of bonds or commercial paper. In many cases the originator of the arrangement will, in return, be selling a package of existing loan ...
    ...... return, be selling a package of existing loan assets in the form of debt instruments. The first of these arrangements is known as 'primary ......
  • Governance and optimal financing for asset‐backed securitization
    • Nbr. 22-5, October 2004
    • Journal of Property Investment & Finance
    • 414-434
    Asset‐backed securitization (ABS) is an interesting financial innovation whereby debt instruments backed by cash flows generated from income‐producing assets are issued for investment purposes in t...
    ...... and composition,legal protections and external market control via debt issuance. The agency problemsarising from the separations of the ..., ABS isreferred to a contractual arrangement whereby debt instruments backed by the cashflows generated from real estate assets are securitized ......
  • Is the third Greek Memoranda of Understanding and Loan Agreement of August 2015 odious?. Truth Committee on Public Debt in Greek or Hellenic Parliament and criticism on results
    • Nbr. 20-3, July 2017
    • Journal of Money Laundering Control
    • 220-230
    Purpose: The purpose of this study is to examine the odious debt concept in Greece. In Greece, the odious debt concept received high attention during recent financial crisis and Greek or Hellenic P...
    • Nbr. 2-4, April 1994
    • Journal of Financial Regulation and Compliance
    • 314-322
    The paper analyses the current two main initiatives in capital adequacy regulation for banks: the EC Capital Adequacy Directive (CAD) and the Basle Committee on Banking Supervision market risk prop...
    ...... following rules: - capital charges for the market risks arising from debt, equity and related derivatives activities in an institution's 'trading ... book is essentially comprised of positions in 'financial instruments' which are held for trading purposes. Financial instruments would include ......
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Law Firm Commentaries
  • Amending Debt Instruments – 3 Tax Questions To Consider
    • Mondaq UK
  • The UK Contractual Recognition Of Bail-In Rules: Partial Delay To Implementation
    • JD Supra United Kingdom
    On 25 November 2015, the Prudential Regulation Authority (PRA) published a ‘waiver by consent’ in relation to the contractual recognition of bail-in requirements. To the extent that it would be imp...
    ...... for firms to comply in respect of liabilities other than certain debt instruments, the PRA will modify their rules on a firm by firm basis to ......
  • UK Implementing Regulations for the Money Market Funds Regulation Published
    • JD Supra United Kingdom
    The Money Market Funds Regulations 2018 have been laid before Parliament and will enter into force partly on June 28, 2018 and fully on July 21, 2018. The EU Money Market Funds Regulation came into...
    ......MMFs are fund vehicles that invest in highly liquid short-term debt instruments, such as government bonds, often used by institutions as a ......
  • UK FCA Issues Consultation Paper on Draft Regulatory Guidance on Cryptoasset Categorisation
    • JD Supra United Kingdom
    Following its commitment within the report issued on 30 October 2018 by the UK’s Cryptoassets Taskforce1, on 23 January 2019 the FCA issued a Consultation Paper (“CP 19/3”)2 setting out draft regul...
    ...... . “financial Instruments” under the Markets in Financial Instruments Directive II; or. . ... holders some, or all, of the rights conferred on shareholders or debt-holders, as well as those tokens that give rights to other tokens that are ......
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  • Chapter CFM23040
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ...... future payments discounted at a market rate of interest for a similar debt instrument. For example a loan made between two parties would be ...Subsequent measurement. Debt instruments that have been classified as ‘basic’ are subsequently measured on an ......
  • Chapter CFM80240
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ...... of companies can use mark to market to account for any loans and debt instruments. These will mostly be banks, insurance companies and ......
  • Chapter CFM13110
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ......They can also be combined with debt instruments or other financial instruments. These arrangements can appear ......
  • Chapter CFM37830
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ......There are a wide variety of hybrid capital instruments, but the new tax rules only apply to instruments which, despite limited uity-like features, are debt in substance. Hybrid capital differs from normal debt instruments in that ......
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