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Part 2SFloating charges

Annotations:

Modifications etc. (not altering text)

C1Pt. 2 amendment to earlier affecting provision S.I. 2015/428, Sch. 2 (with application in accordance with art. 1(4) of the amending S.I.) by The Building Societies (Floating Charges and Other Provisions) Order 2016 (S.I. 2016/679), arts. 1(1)(2), 7(b)

C2Pt. 2 applied (prosp.) by 1967 c. 48, s. 3(1) (as substituted by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp. 3), ss. 49(1), 227 (with s. 223))

Registration and creation etc.S

Prospective

38Creation of floating chargesS

(1)It continues to be competent, for the purpose of securing any obligation to which this subsection applies, for a company to grant in favour of the creditor in the obligation a charge (known as a “floating charge”) over all or any part of the property which may from time to time be comprised in the company's property and undertaking.

(2)Subsection (1) above applies to any debt or other obligation incurred or to be incurred by, or binding upon, the company or any other person.

(3)From the coming into force of this section, a floating charge is (subject to [F1subsection (3A) and]F1 section 39 of this Act) created only when a document—

(a)granting a floating charge; and

(b)subscribed by the company granting the charge,

is registered in the Register of Floating Charges.

[F2(3A)If a floating charge is granted in favour of a central institution, it is created only when the document granting the floating charge is executed by the company granting the charge.]

F2(4)References in this Part to a document which grants a floating charge are to a document by means of which a floating charge is granted.

Annotations:

Amendments (Textual)

F1Words in s. 38(3) inserted (21.2.2009) by Banking Act 2009 (c. 1), ss. 253(2)(a), 263(1)(2) (with s. 247); S.I. 2009/296, art. 3, Sch. para. 11