Commentary

63 Nature of a subordination trust

BANKING vol 4(1)
BANKING vol 4(1) | Commentary

63 Nature of a subordination trust

BANKING vol 4(1) | Commentary

63 Nature of a subordination trust

As has been mentioned above it is possible that if the court would infer that the essential characteristics of a security interest were present in the creation of a subordination trust (intention to create security, identity of beneficiary, identity of trust property), then the usual consequences following the creation of a security would apply including, in the case of an United Kingdom company, the requirement to register the charge1. Consideration of whether the charge infringes any negative pledge clause binding on the junior creditor, or whether there is any regulatory restriction on

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