Commentary

73 Points to be covered in documentation

BANKING vol 4(1)
| Commentary

73 Points to be covered in documentation

| Commentary

73 Points to be covered in documentation

If the chargee, for whatever reason, wishes to take an effective fixed charge over book debts and their proceeds then the document must cover the following points:

  1. 73.1

        there must be granted a fixed charge over the book debts and, separately, their proceeds;

  2. 73.2

        the chargor must collect the book debts as agent and trustee of the chargee;

  3. 73.3

        the chargor must pay the proceeds into a segregated account; and

  4. 73.4

        the chargor must not be able to have access to that segregated account without the prior consent of the chargee; it

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