Canary Wharf Finance plc v Deutsche Trustee Company Ltd and others

Contract – Commercial contract. The Commercial Court construed a clause in the terms and conditions of mortgage-backed debentures (the Notes), which the claimant, a special purpose company in the Canary Wharf Group, had issued, pursuant to the securitisation of the Group's real estate portfolio. It held, in favour of the Noteholders and their trustee, that the redemption of Notes, using the proceeds of a pre-payment made by the borrower to obtain the release of security over a mortgaged property, pursuant to an inter company loan agreement, was an optional redemption under to the relevant terms and conditions, with the result that the claimant had to pay a premium.

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