6 July 1994 Administrative Letter 9323826 F - Bonds Issued in Lieu of Interest -- summary under Payment & Receipt

Bonds issued to a Canadian bank in settlement of arrears interest on a non-performing loan of a Brazilian debtor would not be considered to constitute payment by the debtor and receipt by the bank of interest on the underlying loans, in light of the comments in Cross v. London and Provincial Trust Ltd., [1938] 1 K.B.D. 792.