Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › I can’t follow the lecture on chapter 13
- This topic has 8 replies, 2 voices, and was last updated 2 years ago by MikeLittle.
- May 20, 2020 at 9:04 pm #571352
I just started the lecture on loan capital and I was completely lost and unable to grasp anything. I can’t relate to anything which has lead to my incomprehension. How do you suggest I approach this chapter?May 20, 2020 at 9:10 pm #571354
Listen to it again and, if necessary, again
You should then be able to identify specific bits that are still unclear to you – I can’t help you if you don’t give me directions as to where you’re getting bogged down
Hope to hear from you soon
OK?May 22, 2020 at 9:53 am #571550
I am dedicating this sub to my difficulties concerning this chapter.May 22, 2020 at 9:54 am #571551
In the lecture you said that debenture will be secured by way of fixed charge or floating charge over assets of the company ? explain please.May 22, 2020 at 5:41 pm #571599
A fixed charge over property effectively means that the owner / borrower is unable freely to treat the property as his own – because it’s pledged as security
A floating charge does not relate to a specific item of property – it attaches to the appropriate property held by the borrower at the moment of crystallisation
Until that moment (of crystallisation) the owner / borrower is freely able to use (or sell) that property
Think in terms of inventory! Can buy, sell or even throw away inventory until the loan agreement is defaulted. And that’s when the charge crystallises so owner / borrower is, from that moment, unable to sell or otherwise deal with that property
Better?May 24, 2020 at 9:26 am #571718
on page104, it says that a receiver may prove validity if
the company was solvent at the date of creation of the charge.
can you explain?May 24, 2020 at 4:06 pm #571753
If a company goes into liquidation within (for a floating charge) 12 months of the creation of a charge, a liquidator will claim that the charge was created as a fraudulent preference
But a receiver, acting on behalf of the debenture holder could argue that the charge isn’t fraudulent because, at the time of its creation, the company was solvent
OK?May 25, 2020 at 6:02 pm #571828
what is administration order?May 25, 2020 at 8:12 pm #571831
It’s where a Court orders that the company should be managed (hopefully temporarily) by an administrator (often an accountant!) to try to see the company through a difficult period before the reins of control and passed back to the board of directors
- You must be logged in to reply to this topic.