Promontoria update: effectiveness of assignments
9 / 10 / 2019
Susanne Muth examines the decision in Nicoll v Promontoria and its impact on the scope for challenging the effectiveness and validity of assignments from Clydesdale Bank and other lenders.
In Nicoll v Promontoria (RAM2) Ltd  EWHC 2410 (Ch), Mann J severely limited the scope of challenge. In summary, if Promontoria has given notice of the assignment to the debtor, and the assigning bank has confirmed by notice or has otherwise acknowledged that it considers the assignment complete, the debtor is not entitled to challenge the efficacy or validity of the assignment.