Peters and another v Belhaven Finance Ltd

Lending and security – Standard security – Sale of security subjects by creditor – Obligations incumbent on heritable creditor exercising power of sale after repossession. Sheriff Court: In an action concerning a hotel which the pursuers purchased with the aid of a loan from the defenders and which the defenders subsequently sold after repayments on the loan fell into arrears and they obtained decree for repossession, the court held that while the defenders had failed in their duty to advertise the sale of the subjects, that failure did not have any practical effect on the sale price they achieved; the court was satisfied that they obtained the best price reasonably available and therefore complied with the second part of the obligation imposed under s 25 of the Conveyancing and Feudal Reform (Scotland) Act 1970.

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