The Financial Collateral Arrangements (No.2) Regulations 2003

PART 2 U.K. Modification of law requiring formalities

Certain legislation requiring formalities not to apply to financial collateral arrangements U.K.

4.—(1) Section 4 of the Statute of Frauds 1677 M1 (no action on a third party’s promise unless in writing and signed) shall not apply (if it would otherwise do so) in relation to a financial collateral arrangement.

(2) Section 53(1)(c) of the Law of Property Act 1925 M2 (disposition of equitable interest to be in writing and signed) shall not apply (if it would otherwise do so) in relation to a financial collateral arrangement.

(3) Section 136 of the Law of Property Act 1925 (legal assignments of things in action) shall not apply (if it would otherwise do so) in relation to a financial collateral arrangement, to the extent that the section requires an assignment to be signed by the assignor or a person authorised on its behalf, in order to be effectual in law.

(4) [F1 Sections 860 (charges created by a company) and 874 (consequence of failure to register charges created by a company) of the Companies Act 2006] shall not apply [F2 (if they would otherwise do so)] in relation to a security financial collateral arrangement or any charge created or otherwise arising under a security financial collateral arrangement

(5) Section 4 of the Industrial and Provident Societies Act 1967 M3 (filing of information relating to charges) shall not apply (if it would otherwise do so) in relation to a security financial collateral arrangement or any charge created or otherwise arising under a security financial collateral arrangement.

Textual Amendments

F1 Words in reg. 4(4) substituted (1.10.2009) by The Financial Collateral Arrangements (No. 2) Regulations 2003 (Amendment) Regulations 2009 (S.I. 2009/2462), regs. 1(2), 2(2)(a)

F2 Words in reg. 4(4) substituted (1.10.2009) by The Financial Collateral Arrangements (No. 2) Regulations 2003 (Amendment) Regulations 2009 (S.I. 2009/2462), regs. 1(2), 2(2)(b)

Marginal Citations

M1 1677 c. 3

M2 1925 c. 20

M3 1967 c . 48

Certain legislation affecting Scottish companies not to apply to financial collateral arrangements U.K.

5.   [F3 Sections 878 (charges created by a company) and 889 (charges void unless registered) of the Companies Act 2006] shall not apply [F4 (if they would otherwise do so)] in relation to a security financial collateral arrangement or any charge created or otherwise arising under a security financial collateral arrangement.

Textual Amendments

F3 Words in reg. 5 substituted (1.10.2009) by The Financial Collateral Arrangements (No. 2) Regulations 2003 (Amendment) Regulations 2009 (S.I. 2009/2462), regs. 1(2), 2(3)(a)

F4 Words in reg. 5 substituted (1.10.2009) by The Financial Collateral Arrangements (No. 2) Regulations 2003 (Amendment) Regulations 2009 (S.I. 2009/2462), regs. 1(2), 2(3)(b)

No additional formalities required for creation of a right in security over book entry securities collateral in Scotland U.K.

6.—(1) Where under the law of Scotland an act is required as a condition for transferring, creating or enforcing a right in security over any book entry securities collateral, that requirement shall not apply (if it would otherwise do so).

(2) For the purposes of paragraph (1) an “act”—

(a) is any act other than an entry on a register or account maintained by or on behalf of an intermediary which evidences title to the book entry securities collateral;

(b) includes the entering of the collateral-taker’s name in a company’s register of members.

[F5 Certain legislation affecting overseas companies not to apply to financial collateral arrangements U.K.

6A.    Any provision about registration of charges made by regulations under section 1052 of the Companies Act 2006 (overseas companies) does not apply (if it would otherwise do so) in relation to a security financial collateral arrangement or any charge created or otherwise arising under a security financial collateral arrangement.]

Textual Amendments

F5 Reg. 6A inserted (1.10.2009) by The Financial Collateral Arrangements (No. 2) Regulations 2003 (Amendment) Regulations 2009 (S.I. 2009/2462), regs. 1(2), 2(4)

Certain legislation affecting Northern Ireland companies and requiring formalities not to apply to financial collateral arrangements U.K.

F6 7.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Reg. 7 omitted (1.10.2009) by virtue of The Financial Collateral Arrangements (No. 2) Regulations 2003 (Amendment) Regulations 2009 (S.I. 2009/2462), regs. 1(2), 2(5)