Lender Liability

The book "Lender Liability" by James O'Donovan and Vicky Priskich addresses the liability and risk issues that arise at each successive stage of the relationship between lenders and borrowers or guarantors. Here is a comprehensive overview of the book:

Key Themes

1. Liability and Risk Issues: The book delves into the various liabilities and risks that lenders face in their relationships with borrowers or guarantors. It covers a broad spectrum of potential issues, from the initial stages of the relationship to the final stages of loan repayment or default.

2. Contractual Obligations: It provides a detailed analysis of contractual obligations between lenders and borrowers, including the responsibilities and rights of both parties.

3. Negligence and Advisory Liability: The book explores the principles of negligence and advisory liability, particularly in the context of banking relationships. It examines how lenders can incur liability through actions such as providing inadequate advice or breaching confidentiality.

4. Regulatory Requirements: The authors discuss the regulatory requirements that lenders must adhere to, such as those under the Financial Services Authority (FSA) in England, and how these regulations impact lender liability.

5. Case Law and Legal Framework: The book includes specific references to existing case law concerning banks, providing a comprehensive understanding of the legal framework governing lender liability.

Plot Summary

The book is structured to guide readers through the complexities of lender liability, starting with an overview of the general banker-customer relationship and the obligations it entails. It then delves into specific issues such as:

• Confidentiality and Advice: The duty of confidentiality and the advisory role of lenders are extensively discussed, including the potential for liability in cases of inadequate advice or breach of confidentiality.

• Fraud and Wrongful Trading: The book examines the lender's role in preventing fraud and wrongful trading, including the liability that can arise from failing to detect or prevent such activities.

• Security Holders and Mortgagees: It explores the duties of security holders and mortgagees of land, as well as the liability of lenders for receivers they appoint.

• Environmental Liability: The authors discuss environmental liability and how it impacts lenders, particularly in cases where loans are used for projects with environmental risks.

• Shadow Directors and Wrongful Trading: The final chapters address the liability of lenders as shadow directors concerning wrongful trading, providing a comprehensive analysis of the underlying principles.

Critical Reception

While specific reviews of the book are not provided in the search results, the detailed analysis and comprehensive coverage of key situations in which banks could incur liability suggest that "Lender Liability" by James O'Donovan and Vicky Priskich is a valuable resource for financial institutions, legal professionals, and anyone involved in assessing the risks in banking relationships. The book's inclusion of practical guidance and detailed analysis of the underlying principles indicates its potential to be a highly regarded and useful guide in the field of lender liability.

In summary, "Lender Liability" by James O'Donovan and Vicky Priskich offers a thorough examination of the liabilities and risks associated with lending, providing essential insights into the contractual, regulatory, and legal aspects of lender-borrower relationships.