Written question asked by Lord De Mauley (Conservative), in the House of Lords. It was answered by Lord Davies of Oldham (Labour) on Wednesday, 26 March 2008.

Northern Rock

Question: asked Her Majesty's Government:Whether Granite, or any associated company or entity, has any right to make a call on Northern Rock or its proprietors for any asset or any financing from Northern Rock; and, if so, in what circumstances.

Answer: Northern Rock is contractually obliged to provide certain services to Granite. Northern Rock also has interest rate swap contracts with Granite, and holds some funds on account for Granite. Northern Rock is liable to Granite for these arrangements in the same way it is liable to any other commercial counterparty. Northern Rock has no liability to make good losses on the Granite bonds, and the bonds are not secured on Northern Rock's assets.

Secondary information