Capital maintenance rules and voidance of third-party security

Banking & Finance

Mag. Stephan Schmalzl, ILO Newsletter vom 11. März 2016

The Supreme Court recently dismissed a bank´s claim for enforcement of a third-party mortgage initially given to secure loans granted to two corporate entities. The Supreme Court, irrespective of fierce (and mostly negative) discussions in legal literature, failed to question the nullity of the underlying loan further and thereby indirectly confirmed its previous decision on the ´overall planning´ criterion.