Template:Charges in the uk: Difference between revisions
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==={{t|UK}}=== | ===Registering [[charge]]s in the {{t|UK}}=== | ||
Subject to specified exceptions<ref>one of which is the [[financial collateral arrangement]] under the [[Financial Collateral Regulations]].</ref>, a UK entity must register ''non-possessory'' {{tag|security}} (for example, a [[floating charge]]) it grants in favour of any creditor at [[Companies House]] within 21 days of creating the security, or it will be void on insolvency and against other creditors. | Subject to specified exceptions<ref>one of which is the [[financial collateral arrangement]] under the [[Financial Collateral Regulations]].</ref>, a UK entity must register ''non-possessory'' {{tag|security}} (for example, a [[floating charge]]) it grants in favour of any creditor at [[Companies House]] within 21 days of creating the security, or it will be void on insolvency and against other creditors. | ||
Why? Because it continues to hold onto the secured asset, a third party dealing with it (who might wish to take security over it) needs to know that it is impressed with a [[security interest]]. Not so important when the chargee physically holds the asset, since the chargor in that case isn’t free to deal with it. | Why? Because it continues to hold onto the secured asset, a third party dealing with it (who might wish to take security over it) needs to know that it is impressed with a [[security interest]]. Not so important when the chargee physically holds the asset, since the chargor in that case isn’t free to deal with it. | ||
Revision as of 10:56, 25 November 2019
Registering charges in the UK
Subject to specified exceptions[1], a UK entity must register non-possessory security (for example, a floating charge) it grants in favour of any creditor at Companies House within 21 days of creating the security, or it will be void on insolvency and against other creditors.
Why? Because it continues to hold onto the secured asset, a third party dealing with it (who might wish to take security over it) needs to know that it is impressed with a security interest. Not so important when the chargee physically holds the asset, since the chargor in that case isn’t free to deal with it.
- ↑ one of which is the financial collateral arrangement under the Financial Collateral Regulations.