A Bank's Guide To Freezing Orders

In this article we take a detailed look at freezing orders. Of most concern to lenders will be the obligations that fall on them – as bankers to the respondent which is the subject of the freezing order – when dealing with the respondent's assets, for example in relation to drawings under a loan facility and permitting payments out of a frozen account.

What is it?

A freezing order (or freezing injunction) is an injunction granted by the High Court to restrain one or more parties from disposing of, dealing with, or diminishing the value of, any of their assets, typically up to a certain monetary limit¹. A freezing order may be made in respect of assets within England and Wales (known as a Domestic Freezing Order), or in respect of assets worldwide (known as a Worldwide Freezing Order ("WFO").