Template:Amending security interests: Difference between revisions
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If you amend a [[security | ===[[amendment|Amending]] [[security interest]]s=== | ||
If you amend a document granting a [[security interest]] you risk the argument that you have terminated the old [[security interest]] and created a new one, thereby re-starting any [[voidable preference]] period, potentially invalidating any previously registered charge at [[Companies House]], and of course relegating your interest behind those of anyone who has registered a [[security interest]] over the same assets in the mean time. | |||
Some of these risks have been de-complicated by the [[financial collateral regulations]] (insofar as they've done away with registration requirements for [[financial collateral arrangement]]s), and while this is a bit of a mine-field, basic common sense should avoid anyone but the most headless [[chicken-licken]] standing on any landmines. | Some of these risks have been de-complicated by the [[financial collateral regulations]] (insofar as they've done away with registration requirements for [[financial collateral arrangement]]s altogether), and while this is a bit of a mine-field, basic common sense should avoid anyone but the most headless [[chicken-licken]] standing on any landmines. | ||
For one thing, to run any risk you have to actually be amending the [[security interest]] itself, rather than other related legal or economic terms. So, if you have — ooh, say a [[prime brokerage agreement]] which contains a [[charge]] but a lot of other stuff besides — you are (in the humble opinion of [[Jolly Contrarian|this bear of little brain]]) most likely to be amending ''other'' things and not the actual charge provision, which tends to be dull and {{sex|workpersonlike}}. You may tweak [[rehypothecation]] limits, financing rates, [[transaction]] terms and so on — but the [[security package]] will remain intact. | For one thing, to run any risk you have to actually be amending the [[security interest]] itself, rather than other related legal or economic terms. So, if you have — ooh, say a [[prime brokerage agreement]] which contains a [[charge]] but a lot of other stuff besides — you are (in the humble opinion of [[Jolly Contrarian|this bear of little brain]]) most likely to be amending ''other'' things and not the actual charge provision, which tends to be dull and {{sex|workpersonlike}}. You may tweak [[rehypothecation]] limits, financing rates, [[transaction]] terms and so on — but the [[security package]] will remain intact. | ||
{{magicwords|amendment}} | {{magicwords|amendment}} | ||