18 August 2009

Reliquefication Bills: Risks for Unwary Borrowers

Author: Martin Lovell Australian dollar loan agreements commonly permit a lender to draw reliquefication bills of exchange in the borrower’s name. Many borrowers are unaware that giving a lender this right may potentially expose it to double liability (to the lender and to a holder of a bill) and compel it to repay its loan before it otherwise falls due. Such risks are minimal while the lender remains solvent, however in the current economic climate borrowers are increasingly concerned with managing the risks that reliquefication bills present. This article discusses the risks that reliquefication bills present for unwary borrowers, and outlines how these risks can best be managed. For the full version of the article see the PDF at the bottom of this page. This article was published in the Journal of Banking & Finance Law and Practice. Media contacts: Peter Slattery, Managing Partner Phone. +61 8 8239 7114 Mobile. +61 419 819 348 Email. peter.slattery@jws.com.au

Download: Reliquefication Bills June 09.pdf (25 Kb)

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