Amendments to the Financial Collateral Arrangements (No. 2) Regulations 20032.

(1)

The Financial Collateral Arrangements (No. 2) Regulations 20033 are amended as follows.

(2)

In paragraph (4) of regulation 4 (certain legislation requiring formalities not to apply to financial collateral arrangements)—

(a)

omit from “Section 395” to “registered)” and substitute “Sections 860 (charges created by a company) and 874 (consequence of failure to register charges created by a company) of the Companies Act 2006”;

(b)

for “(if it would otherwise do so)” substitute “(if they would otherwise do so)”.

(3)

In regulation 5 (certain legislation affecting Scottish companies not to apply to financial collateral arrangements)—

(a)

omit from “Section 410” to “Scotland))” and substitute “Sections 878 (charges created by a company) and 889 (charges void unless registered) of the Companies Act 2006”;

(b)

for “(if it would otherwise do so)” substitute “(if they would otherwise do so)”;

(4)

after regulation 6 insert—

“Certain legislation affecting overseas companies not to apply to financial collateral arrangements6A.

 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.”

(5)

Omit regulation 7 (certain legislation affecting Northern Ireland companies and requiring formalities not to apply to financial collateral arrangements).

(6)

In paragraph (6) of regulation 10 (certain insolvency legislation on avoidance of contracts and floating charges not to apply to financial collateral arrangements), for “Section 196 of the Companies Act 1985 (payment of debts out of assets subject to a floating charge (England and Wales)” substitute “Section 754 of the Companies Act 2006 (priorities where debentures secured by floating charge)”.

(7)

Omit paragraph (5) of regulation 11 (certain Northern Ireland insolvency legislation on avoidance of contracts and floating charges not to apply to financial collateral arrangements).