• New Court Rulings Confirm the Assignability of German Loan Receivables
  • June 29, 2005
  • Law Firm: Mayer, Brown, Rowe & Maw LLP - Chicago Office
  • Highly anticipated in financial circles, the Regional Court Frankfurt am Main (Landgericht, "LG") has now published its ruling dated December 17, 2004 regarding the assignability of loan receivables in view of the principle of banking secrecy (Az. 2/21 O 96/02). In the course of the respective temporary injunction proceeding, the Higher Regional Court in Frankfurt am Main (Oberlandesgericht, "OLG") dated May 25, 2004 (Az. 8 U 84/04) had decided in a remarkable ruling that the parties to the credit agreement had implicitly ruled out the transferability of the loan receivables by contractually agreeing to the principle of bank secrecy.