Clause 6 — Transfer of property, rights and liabilities

Part of Delegated Legislation – in the House of Commons at 8:15 pm on 21st February 2008.

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Photo of Philip Dunne Philip Dunne Conservative, Ludlow 8:15 pm, 21st February 2008

It is revealing to learn that the hon. Gentleman is an expert not only on matters of faith but on global securitisation. As he has criticised Dr. Cable for raising the subject of Granite, perhaps he will expand on the final sentence of the technical note from the Treasury which states:

"Northern Rock is not liable for the Granite bonds and bondholders have no access to Northern Rock's assets."

If that is the case, why is it that Northern Rock not only controls all the cash flowing into Granite, but has an obligation to top up assets and the seller's share that it holds in Granite?