Control

I have taken a fixed charge over collateral delivered by my counterparty to a custodian - say a triparty agent — subject to a security interest. My counterparty, however, is entitled to substitute that collateral with something else more or less automatically, provided it maintains a minimum required collateral value.

Is my fixed charge good?

Herewith a disquisition on the modern law of security. This will canvass fixed and floating charges, the Financial Collateral Regulations, the priority of creditors on insolvency and a few home truths.