Allens Arthur Robinson
Further to the posting on 18 October in respect of Bofinger v Kingsway Group Limited  HCA 44 Partner Diccon Loxton of Allens Arthur Robinson explores the decision at length and concludes in respect of lenders:
How does it affect you?
- Lenders will need to look at the drafting of their guarantee documents, particularly the no-competition clause, the clause that is designed to stop guarantors claiming subrogation and other rights against the debtor in competition with the creditor.
- Secured lenders who receive payments from guarantors will need to take care when distributing the proceeds of security or discharging security.