How will the court construe securitisation contracts?

In Citicorp Trustee Co Limited v Barclays Bank Plc and Others,the High Court has confirmed that there are no special principles of construction which apply to securitisation contracts, the terms of which will be decided “in accordance with the general principles of construction applied by the courts in respect of any document it is asked to construe”.

Given the volume, and complexity, of securitisations taking place during the boom years, litigation arising out of such transactions was to be expected. It seems that the court will not apply any special rules to such complex transactions and will continue to adopt the usual principles of interpretation when reviewing contracts.

This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.

For further details on any of the issues covered in this update please contact Angela Stallard, Partner in Corporate and Commercial on 020 7583 2222.