Credit Suisse Asset Management LLC v Titan Europe 2006-1 Plc and others

Bank – Bank loan. The Chancery Division considered the proper interpretation of a trust deed and conditions by which notes (including Class X and Class A to H notes) were issued in four securitisation structures. Each structure concerned loans, which were secured on commercial properties and in respect of which, there had been extensive default. The court held that, on the true construction of the conditions, no account should be taken of additional interest following a default under the loans. Further, the trust deed and conditions together led to the conclusion that, for the purpose of calculating the Class X interest rate after the maturity dates of the Class A to H notes, the unpaid principal of those notes was to be treated as bearing interest at 8% and not a higher rate.

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