morning went into closed session for legal arguments.

The jury and the public were asked to leave as Puisne Judge Richard Ground agreed to hear counsel for the prosecution and defence in chambers.

Mr. Justice Ground told the jury that there were "administrative matters'' which had to be dealt with and excused them until this morning.

Earlier, legal arguments were heard with the jury absent. These cannot be reported for legal reasons.

Before the trial was adjourned, evidence from Bank of Bermuda employee Helen Lima continued from Tuesday.

She told Michael Pert QC that she worked as a secretary and administrative assistant in the loan department during the 1980s and later moved to credit operations.

Mrs. Lima said she was often called on to witness documents signed by borrowers.

Mrs. Lima said it was common practice -- after the lending officer had interviewed a loan applicant and an assistant had processed it -- for other employees to be asked to sign it as witnesses.

She agreed with Mr. Pert that she would not necessarily have met a loan applicant or be able to identify their signatures.

Mrs. Lima told Supreme Court: "Very rarely did you see the customer.'' She was speaking at the trial of former Bank of Bermuda executive Arnold Todd and others.

Todd, 56, of Pearman's Hill, Warwick, is charged with 17 counts of theft, fraud and false accounting, totalling around $1.2 million, allegedly committed between 1985 and 1990. He has pleaded not guilty to all the charges.

It is claimed by the Crown that Todd used his senior position at the bank to submit bogus loan applications and a network of companies to further his schemes.

In the dock with Todd are importer Varnel Curtis, 49, of St. Anne's Drive, Southampton; hotel security chief Milton Woods, 61, of Old Road, Southampton; and businessman Cecil Durham, 56, of Ramgoat Hill, Smith's Parish.

All three men face charges related to the allegations against Todd. All three have pleaded not guilty.

Mrs. Lima, under cross-examination from Todd's defence lawyer John Perry QC, said she had handled a few consumer loans -- but only on the instructions of Todd.

But she insisted: "I didn't approve anything -- I just did as I was instructed.'' In answer to a question from Mr. Perry about whether the bank's credit operations department had the final say on loans, she said: "It was supposed to be.'' Later she told Mr. Pert that what she meant by that was that there were occasions she would query a loan application with Todd.

She added if she was "given a hard time'' she would refer it to a senior member of the credit operations department.

Mrs. Lima added: "In the end, I would have to put it through -- I had to take direction from Mr. Frith.'' The trial continues.