| Commentary

288 Fixed securities

| Commentary

288 Fixed securities

Where any specific or fixed mortgages or other securities have been created or have arisen over the assets of the transferor company during its ownership or that of its predecessors in title, these will continue to encumber those assets despite any transfer of the whole or part of those assets into the ownership of the transferee company under a company reorganisation, unless:

  1. 288.1

        the secured creditors assent to the terms of the scheme for reorganisation; or

  2. 288.2

        their securities are discharged, or replaced by other securities, under the terms of the scheme.

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