Commentary

70 Re Brumark Investments Ltd

BANKING vol 4(1)
| Commentary

70 Re Brumark Investments Ltd

| Commentary

70 Re Brumark Investments Ltd

In the Privy Council decision of Re Brumark Investments Ltd1 it was held on appeal from the New Zealand Court of Appeal that it was not possible to have a fixed charge over book debts and a floating charge over the proceeds of those book debts if the chargor has the right to deal with those proceeds in the ordinary course of its business without any further control being exercised by the chargee.

A bank usually wishes to take fixed security over as many assets of a borrower as possible because as a fixed chargee it

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