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Charges priority

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Charges priority

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by MikeLittle.
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  • November 30, 2015 at 3:02 pm #286445
    cueisheng
    Member
    • Topics: 6
    • Replies: 6
    • ☆

    If a floating charge with negative pledge clause is being created then followed by fixed charge which the the fixed chargee has no actual knowledge on the clause, which charge will rank first?

    November 30, 2015 at 5:59 pm #286502
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    The company has to notify the floating charge holder so your hypothetical question cannot arise

    In addition, the company (or anyone!) must notify the registrar of companies about the floater and the fixed charge lender would MOST PROBABLY have either carried out a search of inspected the company’s own register of mortgages and charges

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