Tynwald has agreed there needs to be a debate about the legal opinion regarding the Sefton loans.
The motion was put forward as a matter of urgency by Michael MHK Alf Cannan and supported by 16 votes in the House of Keys and nine in the Legislative Council. The debate started just after 2.30pm this afternoon.
It proposes Tynwald views with concern the independent legal opinion received in respect of the Sefton loans and the response by the Council of Ministers.
The independent legal advice was circulated to Tynwald members last night.
This morning Economic Development Minister John Shimmin, whose department was responsible for the loans, tendered his resignation.
But speaking on behalf of the Chief Minister, who is away on business, Treasury Minister Eddie Teare said the resignation would not be accepted.
In his opening remarks, Mr Cannan said it should have been.
He said government should not act in arrogance of the law.