AS JUDGMENT DAY APPROACHES, HAMILTON RESERVE BANK CONTINUES TO MARKET FOR NEW CUSTOMERS; WHAT'S WRONG WITH THIS PICTURE?

If you are, like me, on the email list for HAMILTON RESERVE BANK, you have been receiving messages that indicate the bank is reaching out to new potential customers on a global basis, especially in the Middle East. Legal observers in NEVIS, where the bank was incorporated and is based, have reminded me that, on September 15, a number of the civil suits against Hamilton will come on for hearing, and judgments are expected to be entered. A significant number of depositors have been unable to access their accounts for years, and some have resorted to civil litigation for relief; other entities have also filed suit, on other grounds, and those actions will need to be resolved. Meanwhile, the bank continues to solicit new customers.

What will occur when judgments are actually entered in Nevis, we cannot say. In most jurisdictions, the failure of a financial institution to pay its obligations when due is the textbook definition of insolvency, which usually means that regulators step in an place the entity into administration, seeking to salvage something for the creditors, but SKN regulators have not, as yet, taken that step. Whether this exposes them to personal liability is an issue which will, sooner or later, be resolved in local courts, as is the relationship of the island's Premier, MARK BRANTLEY, to the bank.

We are anxiously anticipating the rulings expected on 15 September, as well as the aftermath. Will there be appeals by the bank, and will it be required to post a supersedeas bond? Will it be able to comply? Stay tuned, as we believe that things will get ugly shortly in Nevis.

FOR FURTHER READING:

NEVIS, WHERE THE OFFSHORE BANKS ARE HAPPY TO ACCEPT YOUR DEPOSITS; THEY JUST WON'T GIVE THEM BACK. WILL PREMIER BRANTLEY NOW BE FORCED TO RESIGN FOR THIS SCANDAL?