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  • Caution to Lenders: Real Property Mortgage Successfully Challenged as Unreasonable Director Related Transaction

Caution to Lenders: Real Property Mortgage Successfully Challenged as Unreasonable Director Related Transaction

Andrew Vincent and Peter Mutema of Hamilton Locke warn that lenders must exercise caution when structuring real property mortgages, especially after a recent court decision found such a mortgage to be an unreasonable director-related transaction, highlighting the potential risks of transactions that could be challenged under insolvency laws.