Commentary

74 Effect on security over other assets

BANKING vol 4(1)
| Commentary

74 Effect on security over other assets

| Commentary

74 Effect on security over other assets

If a charge over an asset producing income available to the chargor for use in the ordinary course of its business without restriction cannot be a fixed charge, there would be a question mark against security granted over property producing rental income, over assets in project financing producing income and over investments lodged as security in circumstances where the chargor is allowed (before default) to use the income, the dividend or interest stream for its own purposes.

The case of Re Atlantic Computer Systems plc1 would indicate that where the fixed

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial