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Banking and finance – Lending and security – Performance bond – Notice calling up bond – Validity. Court of Session: Refusing a reclaiming motion in an action seeking payment of a sum said to be due by the defender under a performance guarantee bond it had granted in favour of the pursuer in security of the obligations of the operator of an opencast mine to restore the land following the cessation of mining operations, in which the defender asserted that the notice the pursuer served to call up its liability under the bond was invalid, the court held that the Lord Ordinary was correct to conclude that the notice sent by the pursuer was an effective notice in the light of the terms of the bond.
Banking and finance – Lending and security – Performance bond – Notice calling up bond – Validity. Court of Session: Refusing a reclaiming motion in an action seeking payment of a sum said to be due by the defender under a performance guarantee bond it had granted in favour of the pursuer in security of the obligations of the operator of an opencast mine to restore the land following the cessation of mining operations, in which the defender asserted that the notice the pursuer served to call up its liability under the bond was invalid, the court held that the Lord Ordinary was correct to conclude that the notice sent by the pursuer was an effective notice in the light of the terms of the bond.
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