F1Part A1Moratorium
Chapter 8Miscellaneous and general
Floating charges
A52Void provisions in floating charge documents
(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).