1(1)A charge is of adequate value if it meets conditions A, B and C.U.K.
(2)Condition A is that, at the time the charge is given, the market value of the assets subject to the charge—
(a)in the case of the first charge to secure the loan, is at least equal to the amount owing (including interest), and
(b)in any other case, is at least equal to the lower of that amount and the market value of the assets subject to the previous charge.
(3)Condition B is that if, at any time after the charge is given, the market value of the assets charged is less than would be required under condition A if the charge were given at that time, the reduction in value is not attributable to any step taken by the pension scheme, the sponsoring employer or a person connected with the sponsoring employer.
(4)Condition C is that the charge takes priority over any other charge over the assets.
Commencement Information
I1Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284