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Part 25 U.K.Company charges

Modifications etc. (not altering text)

C1Pt. 25 excluded (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2001 (c. 1), s. 252(1) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.

Chapter 2U.K.Companies registered in Scotland

Valid from 01/10/2009

Avoidance of certain chargesU.K.

889Charges void unless registeredU.K.

(1)If a company creates a charge to which section 878 applies, the charge is void (so far as any security on the company's property or any part of it is conferred by the charge) against—

(a)the liquidator of the company,

(b)an administrator of the company, and

(c)any creditor of the company

unless that section is complied with.

(2)Subsection (1) is without prejudice to any contract or obligation for repayment of the money secured by the charge; and when a charge becomes void under this section the money secured by it immediately becomes payable.

Modifications etc. (not altering text)