Financial Collateral Regulations: Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
Line 14: | Line 14: | ||
===Floating charges - priority=== | ===Floating charges - priority=== | ||
Generally [[floating charge|floating charges]] rank behind [[fixed charge]]s created before they crystallise. The FCRs do not change this. But conflicts of priority between fixed and floating charges are only likely to arise where the Borrower continues to hold and deal with the charged assets. It it does not, it can’t grant anyone else a fuixed charge either. therefore the presence of a third party custodian holding the assets in question (like, you know, a [[Triparty agent|tri-party agent]]) makes a big practical difference. | Generally [[floating charge|floating charges]] rank behind [[fixed charge]]s created before they crystallise. The FCRs do not change this. But conflicts of priority between fixed and floating charges are only likely to arise where the Borrower continues to hold and deal with the charged assets. It it does not, it can’t grant anyone else a fuixed charge either. therefore the presence of a third party custodian holding the assets in question (like, you know, a [[Triparty agent|tri-party agent]]) makes a big practical difference. | ||