The Commercial Court has been told that developer Paddy McKillen is relying on hopes and expectations rather than on actual contractual obligations in his case against the National Asset Management Agency.

Mr McKillen is challenging the transfer of his loans into NAMA.

Senior Counsel for NAMA Bryan Murray told the court that Mr McKillen was alleging that his constitutional right to fair procedures had been denied by NAMA.

But Mr Murray said there was no constitutional right to protect hopes and expectations between a bank and its customer that were not in the contract between them.

He said Mr McKillen had no legal right to a long-term banking relationship with an entitlement to have his loans rolled over.

Mr Murray said if there were constitutional rights that had been invalidated then they were at the weak end of the scale and had been put aside by reason of the overwhelming public interest in NAMA fulfilling its purpose.

Earlier, the court heard that Bank of Ireland classified Mr McKillen's loans as grade 9 on a scale of 1-13, with 13 being the worst performing loans and 1 being the best.

This classification meant that there would have to be enhanced security and enhanced pricing before any increased exposure by the bank.

Lawyers for NAMA will continue making their submissions tomorrow. After that, lawyers for Mr McKillen will reply.