Enforcement of Margin Loans in Light of Recent Case Law
March 2009
Guan Feng Chen, John Hartley, Stephen Phillips
DOWNLOAD PDF: Client Alert - Enforcement of Margin Loans in Light of Recent Case Law
A recent English High Court decision held that preliminary oral discussions between a lender and borrower relating to a margin call amounted to a legally binding oral contract restricting immediate enforcement of the lender's security. The Fluxo Case highlights the difficult position of lenders in enforcement scenarios trying to balance their desire to maintain customer relationships with the need to ensure that their rights of recourse against the borrower are not compromised.
Contacts:
Guan Feng Chen
Partner, Hong Kong
+ 852 2822 8738
John Hartley
Partner, Hong Kong
+ 852 2822 0409
Joel Hogarth
Counsel, Singapore
+ 65 6347 1498
Dan Hamilton
Partner, London
+ 44 20 7532 1206
Stephen Phillips
Partner, London
+ 44 20 7532 1221
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