| Commentary

14.7 Events of default

| Commentary

14.7 Events of default1

These are the most crucial provisions as regards the security of the debenture2. If there is a floating charge only, then it is vital to consider and draft carefully the events which will trigger immediate payment and the steps that must then be taken3. It is important that, where an event occurs which is detrimental to the company’s interests, the floating charge will crystallise, otherwise the security of the debenture will be seriously jeopardised4.

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