| Commentary

133 Secured bank loan

| Commentary

133 Secured bank loan

As with any substantial long-term loan, the bank will routinely demand security over the assets of the business. In the case of a limited liability company, the bank will usually require fixed charges over any assets of the company which will sustain such a charge and a floating charge over the rest of the company’s assets1. The same applies to a limited liability partnership.

In addition, in the event that these assets prove insufficient to cover the outstanding capital and interest on the loan, the bank will wish to have recourse to the personal assets of the

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