Chargee definition

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Taking security—fixed charge—checklist

Taking security—fixed charge—checklist Scope of this Checklist This Checklist sets out the factors to consider when a company is proposing to grant a fixed charge. It assumes that an English or Welsh company will be granting a number of fixed charges to a lender situated in England or Wales. In this Checklist: • the company granting the fixed charge is called the 'chargor' • the entity to which the charge is granted is called the 'chargee', and • the document containing the fixed charge is called the 'security document' Fixed charges can be granted in a standalone security document or form part of the security created by a debenture (see: Documentation required to create a fixed charge below). For more information, see: Practice Note: Fixed and floating charges. Preliminary questions before taking security by way of a fixed charge • Is a fixed charge the appropriate method of taking security? ◦ A fixed charge can be granted by a company, limited liability partnership and other bodies corporate. It can also...

Leasing or buying from a receiver or an administrative receiver (Scotland)—checklist

Leasing or buying from a receiver or an administrative receiver (Scotland)—checklist Title When taking a lease or a disposition from a receiver or an administrative receiver, the title deeds should include: • the original or a certified copy of the floating charge under which the receiver has been appointed • a certificate from the chargee (or their solicitor) that the power of appointment under the floating charge has arisen • the original or a certified copy of the instrument of appointment of the receiver either under IA 1986, s 53 (by holder of a floating charge) or under IA 1986, s 54 (by the court), and • (in the case of any appointment under IA 1986, s 53) a certified copy of the receiver’s notice of acceptance of the appointment (the original will be held by the chargee) It is also necessary to check that the floating charge: • has been registered at Companies House • has been validly executed (see Practice Note: Execution of documents under Scots law) •...

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Fixed and floating charges

There are four main types of security available under English law:•Mortgage•charge•Pledge, and•LienThis Practice Note explains:•the nature of a charge (compared with other security interests)•the nature of a fixed charge compared to a floating charge•the types of assets which are typically the subject of fixed charges•perfection of fixed charges, and•priority considerations when taking a fixed chargeThis Practice Note predominantly focuses on fixed charges. Practice Note: Floating charges provides more detailed information on floating charges, including considerations when taking a floating charge, crystallisation and re-characterisation issues.Special rules apply to agricultural charges. For more information, see Practice Note: Agricultural charges under the Agricultural Credits Act 1928.The nature of fixed and floating chargesA charge has the following characteristics: •it confers on the secured party (the chargee) an equitable (as opposed to legal) interest in the charged asset)•it does not involve the transfer of title to an asset; this contrasts with a legal mortgage where the legal and beneficial title is transferred to the secured party, and an equitable mortgage where the beneficial title is...

Crystallisation of floating charges

The key feature of a floating charge is that, until it crystallises, the chargor is entitled to deal with the charged assets in the normal course of business without any further consent from the chargee. By contrast, a fixed charge requires the chargee to exercise a significant degree of control over the charged asset.This Practice Note examines:•the effect of crystallisation of a floating charge•types of event that trigger or may trigger crystallisation, including automatic crystallisation, and•partial crystallisationFor further detail on the nature of fixed and floating charges, see Practice Note: Fixed and floating charges. For information on the advantages and disadvantages of floating charges, see Practice Note: Floating charges—advantages and disadvantages. For information on how to take a floating charge, see Practice Note: Floating charges. See also Security—frequently asked questions.The effect of crystallisationImpact of crystallisation on priorityUpon crystallisation of a floating charge, the floating charge attaches to all existing assets that are within the scope of the charge and becomes fixed. The main consequence of crystallisation is that the chargor's...

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Ireland—Letter of non-crystallisation of a floating charge under a security agreement

Letter of non-crystallisation This precedent is a letter for use where: • a buyer is buying a business and/or an asset which is subject to a floating charge (the Charged Asset), or • a lender is taking security for a loan to a borrower by way of a second floating charge over the Charged Asset The letter confirms that: • the floating charge has not crystallised, • no steps have been taken to crystallise the floating charge, and • the chargee consents to either: — the sale of, or — the creation of a second floating charge over the Charged Asset Under a floating charge, the chargor is free to deal with a charged asset in the ordinary course of its business • selling the charged asset, or • creating further security over the charged asset (unless prohibited by the agreement creating the first floating charge) This freedom lasts until the charge 'crystallises' upon the occurrence of certain events. Once crystallised, • the floating charge becomes a fixed charge...

Letter of non-crystallisation of a floating charge under a security agreement

Letter of non-crystallisation of a floating charge under a security agreement [ON HEADED NOTEPAPER OF CHARGEE] [insert the name and address of the buyer/ second lender] [insert date] Dear [insert organisation name], [Debenture OR Floating Charge] dated [insert date of agreement] (the Security Agreement) between [insert name of Chargor] and ourselves (the Chargee) 1 We certify that[ to the best of our knowledge, information and belief], on or before the date of this letter, 1.1 no event has occurred which has caused or would cause the crystallisation of the

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Lexis®PSL Dispute Resolution weekly highlights—7 January 2016

Happy New Year and welcome to the first weekly highlights of 2016 from the Lexis®PSL Dispute Resolution team. This week’s edition includes analyses of judgments and developments on a broad range of matters including: Part 36 costs consequences (Yentob); concurrent breach and concurrent causes of action (Capita (Banstead 2011); late amendments (Ali); anti-enforcement injunctions (Ecobank); adjudication (RMP Construction); Brussels I consumer provisions and related contracts (Rudiger Hobohm); similar facts evidence (Claverton Holdings); and, the implementation of the online dispute resolution (ODR) platform. We’ve also added more professional negligence Precedents to our suite. All this, and much more, in this week’s highlights.