Commentary

75 The effect of Spectrum on documentation

BANKING vol 4(1)
| Commentary

75 The effect of Spectrum on documentation

| Commentary

75 The effect of Spectrum on documentation

It may be possible for bank and customer to achieve the desired result by executing a charge over the account into which the proceeds of the book debts is paid (‘the blocked account’) and then lending increased sums against the security of the blocked account. Alternatively an overdraft on the blocked account (into which the proceeds of the book debts are paid thus reducing the borrowing) may be created and the sums lent on overdraft transferred into a trading account which is maintained in credit. As was pointed out by Lord Scott in

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial