THE WIDOW of property developer Liam Maye is resisting a bid by Friends First Finance Ltd to recover some €4.6 million under a guarantee and indemnity allegedly provided by her over loans made to the couple’s three daughters for equity fund investments.

The financial institution claims the money is owed by Anne Maye arising from a guarantee and indemnity of February 4th, 2009.

It claims they required her to pay on demand some €4.5 million loaned to her daughters, Emma, Dawn and Nicola, in the event of their not repaying the loans.

At the Commercial Court yesterday, Eileen Barrington SC, for Ms Maye, urged Mr Justice Peter Kelly not to enter summary judgment against her client. She said Ms Maye had an arguable defence to the claim, was entitled to the protections afforded by the Consumer Credit Act 1995 and there were issues whether provisions of that Act were complied with.

There was a complex issue of law whether the alleged indemnity could properly be construed as an indemnity, Ms Barrington said. If the documents signed by Ms Maye incorporated an indemnity, as alleged by the bank, that would deprive her of the protection afforded by the Act when that could not have been intended.

Hugh O’Keeffe SC, for Friends First, said Friends First had both a contract of guarantee and a contract of indemnity. All that was required of his client was to issue a demand and that demand had been issued.

Mr Justice Peter Kelly reserved his decision on the application.

The proceedings against Ms Maye arise after Friends First obtained summary judgments in the Commercial Court last year against her daughters.

Mr Justice Kelly entered judgment against the three daughters, of €1.54 million, €1.55 million and €1.54 million respectively. They had opposed summary judgment on grounds including alleged breach of provisions of the Consumer Credit Act. Those judgment orders have been appealed to the Supreme Court.

After failing to recover the judgment monies from the daughters, Friends First had on November 14th last called on Anne Maye to discharge the loans. When she failed to do so, it brought the court proceedings.

Mr Justice Kelly had previously heard that Mr Maye, who died in May 2008, had just months earlier requested that arrangements be made for his daughters by Warren Private Clients, wealth advisers to Mr Maye, in order to ensure financial provision for their future.

The arrangements were tax driven and involved the daughters being put into a fund which had been set up for Mr Maye by Warren Private Clients, the court heard. Under the rules of the fund, the daughters would only pay tax when they exited it.

To finance the daughters’ investments into the fund, loans were secured from Friends First.