The Supreme Court has ruled that the legislation governing the National Asset Management Agency is constitutional, but the court found that developer Paddy McKillen should have the right to make representations to the agency before his loans are acquired..
The court was giving its decision on the remaining elements of Mr McKillen's challenge to NAMA.
Last month it ruled that the original decision to take in Mr McKillen's loans was invalid, because it was made before the agency was officially established.
The court did not agree that the definition of eligible bank loans in the NAMA legislation was too broad and was unconstitutional. But it unanimously found that Mr McKillen and his companies, and people such as them, do have the right to make representations before any decision is taken to acquire their loans.
The court made a declaration that Mr McKillen and his companies were entitled to be informed by NAMA of any intention to consider making a decision to acquire his loans, so as to give them an opportunity of making representations concerning such a decision.
NAMA has not yet made a decision to acquire Mr McKillen's loans. Mr McKillen and his companies owe more than €2 billion to banks participating in the agency.
NAMA Chairman Frank Daly said he welcomed the Supreme Court decision. 'The outcome of this hearing is an important confirmation of the legal standing of NAMA and eliminates any uncertainty in this area,' he added.
'We will study the decision carefully with our legal advisors and we note the finding of the court that Mr McKillen and his companies have the right to make representations to NAMA before the agency makes a decision to acquire the bank loans,' Mr Daly said in a statement.