CG65954 - Losses: loans to traders: irrecoverability: lender makes further loans

Sometimes a lender may have continued to make loans to the borrower after the date on which it is claimed that earlier loans became irrecoverable. This may in some cases indicate that the earlier loans should not be regarded as irrecoverable; but even in these circumstances, this will not always be the case. The lender may have been unaware of the parlous financial state of the borrower. Whether a loan should be regarded as irrecoverable is largely a question of fact. Although the lender’s view of the recoverability, or otherwise, of any particular loan may be a relevant factor to taken into account in coming to an overall judgement as to the prospects of recovery, what matters is the objective basis for the judgement in the evidence presented in support of the claim.