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Knightsbridge Estates Trust Ltd v Byrne : ウィキペディア英語版 | Knightsbridge Estates Trust Ltd v Byrne
''Knightsbridge Estates Trust Ltd v Byrne'' () AC 613 is a UK insolvency law case, concerning the creation of a security interest. ==Facts== Knightsbridge Estates wished to pay off the principle sum of the £310,000 loan from Mr Byrne’s insurance company. However, the contract stated the repayments would be made over 40 years, twice a year. If Knightsbridge paid of the principal early, it would reduce the total amount of interest it would pay to Mr Byrne. Knightsbridge Estates argued that the long repayment schedule was a clog on the equity of redemption. Byrne argued that because the loan counted as a debenture, under CA 1929 section 74 (now CA 2006 section 739) it was exempt from the rule of equity on clogs of redemption and the contract stayed as it was created. In the Court of Appeal, Lord Greene MR〔() Ch 441, 455〕 held that the loan was a debenture. He said that said this was ‘a commercial agreement between two important corporations, experienced in such matters, and has none of the features of an oppressive bargain.’
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