Icamp v Eykamp [2008] NSWSC 853

In this case the lender sought to extend a caveat protecting a loan for $400,000. The court determined that because the loan was over six years old its recovery was statute barred. this was because the loan was repayable “at call”. Where a loan is repayable at call the statute of limitations begins to run from when the loan is drawn down. The Court also noted the loan was unenforceable because no stamp duty had been paid. The Court moreover held the drafting of the caveat rendered it unsupportable because it described the interest as a loan rather than as a charge securing a loan. This case provides further proof (if it was needed) that lenders need to be represented by a solicitor who knows what they are doing.

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