81,788
edits
Law of Property Act 1925: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 11: | Line 11: | ||
===Section 93=== | ===Section 93=== | ||
By contracting out of section 93 of the Act we can consolidate all [[security]] granted by a counterparty into a single [[security interest]]. Relevant if you have multiple [[charge]]s, [[mortgage]]s and security interests. You might not intend to, but you never know how a relationship can develop. If you | By contracting out of section 93 of the Act we can consolidate all [[security]] granted by a counterparty into a single [[security interest]]. Relevant if you have multiple [[charge]]s, [[mortgage]]s and security interests. You might not intend to, but you never know how a relationship can develop. If you don’t disapply it, you could be left with parallel security interests, so you may lose out if there is an excess under one and a shortfall under the other (in that you may wind up as an unsecured creditor for that rump). There is no particular benefit to a client in resisting it, so if one should try to, ''[[hold the line]], [[Toto]]''. | ||
===Section 103=== | ===Section 103=== | ||
| Line 23: | Line 23: | ||
The relevant paragraphs here are Sections 101(1) (i) and (iii): the powers to sell and appoint a receiver. These powers arise “when the mortgage money has become due”. Generally under a [[Prime brokerage]] relationship liabilities become due immediately after execution of the agreement, so there is no need for due and unpaid money to acquire these two powers. | The relevant paragraphs here are Sections 101(1) (i) and (iii): the powers to sell and appoint a receiver. These powers arise “when the mortgage money has become due”. Generally under a [[Prime brokerage]] relationship liabilities become due immediately after execution of the agreement, so there is no need for due and unpaid money to acquire these two powers. | ||
A {{tag|prime broker}} generally | A {{tag|prime broker}} generally won’t be able to enforce {{tag|security}} until there has been an [[Event of Default]]. It is key to be able to sell charged assets to a third party. Without this amendment selling the charged assets would be practically difficult as the purchaser would need to investigate whether an [[Event of Default]] had occurred. The effect of this clause is that the power of sale arises as soon as the agreement is signed. | ||
===[http://www.legislation.gov.uk/ukpga/Geo5/15-16/20/section/136 Section 136]=== | ===[http://www.legislation.gov.uk/ukpga/Geo5/15-16/20/section/136 Section 136]=== | ||