24 Oct 2013
WATSON & SON LIMITED v DANIELL [2013] NZHC 2807
- Citation
- [2013] NZHC 2807
- Court
- High Court
The priority clause requires the Daniell Trust to sign a new deed of priority in respect of substituted bank security provided the refinancing is bona fide; the clause permits substitution(s) and does not expressly cap the substituted bank's priority at $3.5m, but bona fides is an implied limitation preventing arrangements that would unfairly jeopardise the Trust's security.