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Dear Mike
Am I correct saying that the fixed and floating charges take priority based on the date of the registration and not based on the date of their creation?
For example. if fixed charge of £10 was created on the 1st of April and registered on the 15th of April and fixed charge of £20 was created on the 4th of April but registered on the 10th of April in case of liquidation the charge of £20 takes priority over the charge of £10
BPP text book states:
Fixed charges rank according to the order of their creation. If two successive fixed charges over the same factory are created on the 1st of January and the 1st of February the earlier takes priority over the later one.Thanks
Gabbi
BPP is correct – it’s the date of creation that gives the ranking, not the date of registration
Hi Mike thanks for your prompt response.
Sorry but I still confused. In the OT notes (Loan Capital) is written:
If there are 2 fixed charges (or 2 floating charges) over the same propriety the earlier one will take precedence. The earlier one which is registered first.
Could you please help me what is the difference between what wrote in the BPP and in OT.
I might miss something that confused me.Thanks in advance for your help
Gabbi
Hi, when I recorded the lectures and wrote the notes, I think that I’m correct in saying that the nets were correct.
However, the situation now is that the date of creation is the important date, not the date of registration.
That note needs to be updated and thank you for pointing it out
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