Nelson Enonchong

Secured lending: when is the lender put on inquiry in a “hybrid” transaction?

In One Savings Bank plc v Waller-Edwards the Court of Appeal advanced a test to be applied to determine whether the lender is put on inquiry in a secured lending “hybrid” transaction where the relationship between the two borrowers is non-commercial. This article argues that there are problems with the test advanced by the Court of Appeal and that a preferred test is discoverable in the judgment of the House of Lords in Royal Bank of Scotland plc v Etridge.