Barnett Waddington Trustees (1980) Ltd and another v Royal Bank of Scotland

Bank – Bank loan. The Chancery Division allowed the claimants' application and made a declaration to the effect that borrowers in a property loan were not liable to pay to the defendant bank any sum in respect of an internal swap. On the true construction of the loan agreement between the parties, the internal swap did not qualify as a 'funding transaction', for which, under the agreement, the borrowers were to indemnify the bank.

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