Textual Amendments
F1Pt. A1 inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), ss. 1(1), 49(1) (with ss. 2(2), 5(2))
Modifications etc. (not altering text)
C1Pt. A1 excluded by S.I. 2012/3013, Sch. 1 para. 1(2A) (as inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 49(4) (with ss. 2(2), 5(2)))
C2Pt. A1 power to apply (with modifications) conferred by 2011 c. 25, s. 247A (as inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 45 (with ss. 2(2), 5(2)))
C3Pt. A1 applied (with modifications) by S.I. 2014/229, art. 2(A1), Sch. 1 para. 1(2), Pt. 1A (as inserted (18.7.2020) by The Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) (Amendment) and Consequential Amendments Order 2020 (S.I. 2020/744), arts. 1, 7(b), 11(b)(c))
(1)A provision in an instrument creating a floating charge is void if it provides for the obtaining of a moratorium, or anything done with a view to obtaining a moratorium, to be—
(a)an event causing the floating charge to crystallise,
(b)an event causing restrictions which would not otherwise apply to be imposed on the disposal of property by the company, or
(c)a ground for the appointment of a receiver.
(2)The reference in subsection (1) to anything done with a view to obtaining a moratorium includes any preliminary decision or investigation.
(3)In subsection (1) “receiver” includes a manager and a person who is appointed both receiver and manager.
(4)Subsection (1) does not apply to a provision in an instrument creating a floating charge that is—
(a)a collateral security (as defined by section A27);
(b)a market charge (as defined by section A27);
(c)a security financial collateral arrangement (within the meaning of regulation 3 of the Financial Collateral Arrangements (No. 2) Regulations 2003 (S.I. 2003/3226));
(d)a system-charge (as defined by section A27).]