Part 25Company charges

Chapter 2Companies registered in Scotland

Avoidance of certain charges

889Charges void unless registered

(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.