Actions taken to seize control of a securitisation structure and
the underlying loan portfolio declared void and of no effect.
Summary
Two recent High Court cases, Business Mortgage Finance 6 Plc v
Greencoat Investments Limited and others [2019] EWHC 2128 (Ch) (the
Greencoat Case) and Business Mortgage Finance 6 Plc v Roundstone
Technologies Ltd [2019] EWHC 2917 (Ch) (the Roundstone Case)
(together, the Business Mortgage Cases), have affirmed a number of
principles relating to securities held through the clearing systems
and the powersof receivers, including the following:
- The ability of noteholders to direct
the trustee to act is set out in the terms of the transaction
documents.
