I don't think that's quite right. Lambda is taking out loans against the ISA but the only way to discharge the debt is by declaring bankruptcy. If Lambda defaults on these loans the bank will indeed own them but won't be satisfied just taking back the ISA contracts and enforcing them themselves (and presumably, if they default, the ISAs aren't worth what they were financed at anyway). Lambda is still on the hook for the full balance of the debt unless they want to close up and liquidate or file chapter 11.
