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Part VIIIU.K. Security

GeneralU.K.

106 Ineffective securities.U.K.

Where, under any provision of this Act, this section is applied to any security provided in relation to a regulated agreement, then, subject to section 177 (saving for registered charges)—

(a)the security, so far as it is so provided, shall be treated as never having effect;

(b)any property lodged with the creditor or owner solely for the purposes of the security as so provided shall be returned by him forthwith;

(c)the creditor or owner shall take any necessary action to remove or cancel an entry in any register, so far as the entry relates to the security as so provided; and

(d)any amount received by the creditor or owner on realisation of the security shall, so far as it is referable to the agreement, be repaid to the surety.