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On 1 April 20X9 Jabeen created a fixed charge for £50,000 over the assets of Clogs Ltd and it was registered on 1 June 20X9. On 1 May 20X9 a fixed charge for £100,000 was created over the same assets on behalf of Adeel. Adeel’s fixed charge was registered on 13 May 20X9. Which of the following statements describes the priority of the two fixed charges?
A Jabeen’s fixed charge has priority as it was created first
B Adeel’s fixed charge has priority as it was registered within 21 days of creation before Jabeen’s fixed charge
C Both charges rank equally in priority as they are both fixed
D Adeel’s fixed charge has priority as it has a greater valueAnswer-B-As Jabeen’s charge was not registered within 21 days of creation, Adeel’s charge takes priority.
The answer has been taken from the latest Kaplan exam kit. is it correct?
Yes – in the situation that a fixed charge is not registered within the 21 day registration period, that charge becomes invalid and the debt is immediately repayable
That’s why it is accepted that ANY person may register the charge even though it’s primarily the responsibility of the company to effect registration
OK?
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