Select Committee on Standards and Privileges Ninth Report


ANNEX H

The terms of the loan set out in an unsigned memorandum drafted for Mr Mandelson by his solicitors, Messrs Wegg-Prosser and Farmer

  

THIS MEMORANDUM is made the day of October 1996 between GEOFFREY ROBINSON (GR) and PETER BENJAMIN MANDELSON (PBM) in respect of 9 Northumberland Place, London W2 (the property).

IT IS HEREBY AGREED

1.  GR will provide PBM with an unsecured loan (the loan) not to exceed £373, 500 to enable PBM to acquire and refurbish the property.

2.  PBM will at a time to be agreed between the parties repay the loan together with simple interest accruing thereon calculated by reference to the base rate of Midland Bank plc (or any successor of that Bank) as varied from time to time.

3.  This memorandum shall be kept confidential and shall not be registered at H.M. Land Registry without the consent of both parties unless GR shall give to PBM 90 days notice of his intention to register the same so as to enable PBM to take such steps as shall be appropriate to repay the loan.

4.  In the event of the death of PBM GR shall be at liberty forthwith to register this memorandum at H.M. Land Registry so as to secure the repayment of the loan.

5.  In the event of the death of GR PBM shall take such action as shall be reasonably required by the Estate of GR to secure the interest of the estate of GR for the repayment of the loan but the estate shall not register this memorandum as a charge against the property for a period of less than 6 months from the date of the death of GR.

6.  The loan together with interest accruing thereon shall be repaid by PBM to GR upon the sale of the property unless some substitute agreement shall be reached by GR and PBM.

7.  Notwithstanding the terms hereof the loan together with interest on the amount to be repaid shall be repaid as to part by PBM out of the net proceeds of sale of [London flat] after repayment of mortgages secured upon [London flat] and [Hartlepool house].

8.  Other than a first mortgage to the Britannia Building Society PBM shall not reduce the equity of the property by securing any other loans upon the property.

SIGNED

15 October 1996  (Received by the Parliamentary Commissioner for Standards on 13 April 1999)


 
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