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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › charge

  • This topic has 7 replies, 2 voices, and was last updated 9 years ago by MikeLittle.
Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • November 12, 2015 at 11:48 am #281938
    syed ali
    Member
    • Topics: 92
    • Replies: 54
    • ☆☆

    a chargeholder can prohibit the creation of a later charge with priority but the prohibition is only effective if a subsequent chargee has notice of the prohibition as well as the charge
    mike please explain this simply

    November 12, 2015 at 2:11 pm #281962
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Where a floating charge has been created and now a fixed charge is proposed over the same asset (a negative pledge clause) such a clause is ineffective if the proposed fixed charge lender does not have notice of the existing floating charge and the negative pledge clause

    November 12, 2015 at 2:46 pm #281979
    syed ali
    Member
    • Topics: 92
    • Replies: 54
    • ☆☆

    mike you mean that if new lender know about the floating charge on asset and negative pledge clause then the fixed charge on same asset is effective

    November 12, 2015 at 2:51 pm #281980
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Yes, and no! The negative pledge clause requires the company to notify the floating charge lender of the impending creation of a fixed charge. If the floating charge lender accepts this priority charge, then fine. If not, the floater will likely ask for immediate replacement / repayment

    November 12, 2015 at 3:01 pm #281986
    syed ali
    Member
    • Topics: 92
    • Replies: 54
    • ☆☆

    mike you mean its lender of floating charge who has to be notified about the fixed charge and if he agrees to create the fixed charge on same asset then its effective is i am correct

    November 12, 2015 at 3:02 pm #281987
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Correct

    November 12, 2015 at 3:05 pm #281989
    syed ali
    Member
    • Topics: 92
    • Replies: 54
    • ☆☆

    thanks mike

    November 12, 2015 at 3:08 pm #281993
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    You’re welcome

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