After the York Buildings Company failed, its real property in Scotland became the subject of a ranking of creditors. In this ranking, a group of creditors objected to certain claims that had been submitted. In particular, the creditors made two key objections to claims based on bonds issued by the Company. First, the creditors objected that many bonds had been cut off by the Scottish statute of limitations, or “prescription.” In response, the affected bondholders argued that the prescription should not apply because the debts were still valid in England, where they had been contracted and where the York Buildings Company and its creditors resided. Second, the creditors objected that some bonds had been issued under value and should be ranked accordingly. The affected creditors argued that the bonds were negotiable instruments, and purchasers were entitled to rely on their face value. In the course of the proceedings, both sides filed petitions with the Court of Session.
William Morison, The Decisions of the Court of Session (1811), pg. 4525, , pg. 4978
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