C1Part 2Floating charges
Registration and creation etc.
38Creation of floating charges
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) andF1 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.
F23A
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.
F24
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.
Pt. 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))