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Dear friends,
I am in stuck with the Loan Capital: priority of payment for the 2 fixed charges (or 2 floating charges) over the same property.
According to the lecture note, the one registered first should take precedence. But I read the F4 December 2013’s answer, they based on time of creation.
What is the correct answer?
Best regards.
Its based on the creation of the charges if they are of the same type (if they were both floating charges or both fixed charges) and the charges were validly registered within time limit.Fixed charges take priority over floating charges over the same property even if created at later date.The only way this is not the case is if the floating chargeholder includes a prohibition over a fixed charge being created over same property at a later date AND if a fixed chargeholder has actual knowledge of existence of this prohibition.
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