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Financial Collateral Regulations: Difference between revisions
Financial Collateral Regulations (view source)
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*'''[[Appropriation]]''': Outside the FCRs, a Lender can only “foreclose” on secured assets (i.e. become their absolute owner in discharge of the secured liabilities) with the court’s permission. However, under the FCRs, the holder of an SFCA may “appropriate” secured assets (i.e. become their absolute owner in discharge of the secured liabilities subject to accounting for any excess over the secured liabilities) without specific court approval<ref>FCRs Reg 17.</ref>. | *'''[[Appropriation]]''': Outside the FCRs, a Lender can only “foreclose” on secured assets (i.e. become their absolute owner in discharge of the secured liabilities) with the court’s permission. However, under the FCRs, the holder of an SFCA may “appropriate” secured assets (i.e. become their absolute owner in discharge of the secured liabilities subject to accounting for any excess over the secured liabilities) without specific court approval<ref>FCRs Reg 17.</ref>. | ||
===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. | ||