Treasury and Resources
Ministerial Decision Report
Lloyds Bank International Ltd/Jersey Homes Trust – approval of assignment
- Purpose of Report
To provide information to the Minister for Treasury and Resources with regard to the request to approve an assignment from Lloyds Bank plc (formerly Lloyds TSB Bank plc) (the Assignor) to Lloyds Bank International Ltd (the Assignee) in respect of documentation relating to two loans to Jersey Homes Trust where the Treasurer of the States had issued letters of comfort.
- Background
Certain loan facilities were made by Lloyds Bank plc to Jersey Homes Trust in relation to developments at:-
(a) Field 1218, Mont a l’Abbe, St Helier (Field 1218) - £8,600,000
(b) Le Coie Apartments, St Helier - £12,250,000
In connection with these loan facilities the following Public Documentation was entered into:-
Field 1218
- An agreement dated 17th March 2005 which contained an option to allow the Public to step-in in the event of degrevement or to take an assignment of the loan facilities from the assignor in the event of bankruptcy proceedings against Jersey Homes Trust.
- A letter of comfort on behalf of the Housing and Finance and Economics Committee’s dated 31st March 2005 (a copy is attached as Appendix B).
Le Coie
- An option agreement subject to terms and conditions was set out in the contract of sale between The Public, Jersey Homes Trust, the Assignor and others registered before the Royal Court of Jersey on 28th July 2006.
- A letter of comfort on behalf of the Minister for Housing and the Minister for Treasury and Resources dated 26th July 2006 (a copy is attached as Appendix C).
- Current position
The Assignor has with effect from 30th October 2015 assigned all its right, title interest and obligations in the loan facilities to the Assignee and Jersey Homes Trust, as borrower, has acknowledged the same.
The Assignee and Jersey Homes Trust have entered into new bonds and the repayment of the loan facilities has been secured against Field 1218 and Le Coie by way of respective judicial hypothecs in favour of the Assignee registered before the Royal Court of Jersey on 30th October 2015.
The Assignor has agreed to assign all its right, title interest and obligations in the Public Documentation and the Assignee has agreed to accept an assignment of the same.
As a result, Jersey Homes Trust and the Public, through the Treasurer of the States are being asked to agree to be party to this Agreement to acknowledge and accept the same.
A copy of this Agreement is attached as Appendix A. The Law Officers’ advice has been sought on the Agreement and they have no substantive comments.
The assignment of option agreements will need to be signed by the Greffier of the States on behalf of the Public. Copies of the documentation have been sent to the States Greffe and will be dealt with by them directly.
The approval required from the Minister for Treasury and Resources relates only to the letters of comfort.
- Recommendation
The Minister is recommended to authorise the Treasurer of the States to sign the Assignment Agreement in respect of the two letters of comfort.
- Reason for Decision
To formally acknowledge the assignment from Lloyds Bank plc (the Assignor) to Lloyds Bank International Limited (the Assignee) in respect of documentation relating to Le Coie Flats and Field 1218, Mont a L’Abbe, St Helier.
- Resource Implications
There are no resource implications arising as a result of this decision.
Report author : Head of Shareholder Relations | Document date : 7th March 2016 |
Quality Assurance / Review : Head of decision Support | File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2016-0026 - LLoyds Bank JHT Approval of Assignment |
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