Part XVIIIS Floating Charges and Receivers (Scotland)

Modifications etc. (not altering text)

C1Pt. XVIII (ss. 462–487) extended (with modifications) by S.I. 1989/638, regs. 18, 21, Sch. 4 para. 13

Chapter IS Floating Charges

Modifications etc. (not altering text)

462 Power of incorporated company to create floating charge.S

(1)It is competent under the law of Scotland for an incorporated company (whether a company within the meaning of this Act or not), for the purpose of securing any debt or other obligation (including a cautionary obligation) incurred or to be incurred by, or binding upon, the company or any other person, to create in favour of the creditor in the debt or obligation a charge, in this Part referred to as a floating charge, over all or any part of the property (including uncalled capital) which may from time to time be comprised in its property and undertaking.

(2)-(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

(4)References in this Part to the instrument by which a floating charge was created are, in the case of a floating charge created by words in a bond or other written acknowledgment, references to the bond or, as the case may be, the other written acknowledgment.

(5)Subject to this Act, a floating charge has effect in accordance with this Part [F2and Part III of the Insolvency Act 1986] in relation to any heritable property in Scotland to which it relates, notwithstanding that the instrument creating it is not recorded in the Register of Sasines or, as appropriate, registered in accordance with the M1Land Registration (Scotland) Act 1979.

Textual Amendments

Modifications etc. (not altering text)

C3S. 462 applied (with modifications) (6.4.2001) by S.S.I. 2001/128, reg. 3, Sch. 1

Marginal Citations