The following Banking & Finance practice note provides comprehensive and up to date legal information covering:
Registration can have an important effect on the priority of competing security interests.
Broadly speaking, there are two systems for registration of security interests:
registration against the entity providing the security, and
registration against the asset which has been secured
This Practice Note is concerned with the first system of registration where the entity providing the security is a company formed and registered under the Companies Act 2006 (a 'UK company') and explains:
the requirement to register at Companies House
whether registration constitutes constructive notice to other creditors
whether registration constitutes constructive notice to other creditors of a negative pledge
the consequences of failure to register security at Companies House and the effect of registering security at Companies House as against the effect of registering security at other asset registries
For information about how registration against an asset affects priority of security interests, see Practice Notes:
Effect of registering security at HM Land Registry/Land Charges Department on priority of security interests
Effect of registering security on the UK Ship Register on priority of security interests
Effect of registering security on the UK Register of Aircraft Mortgages on priority of security interests, and
Effect of registering security at IP registries on priority of security interests
The rules governing priority of security interests generally are discussed in Practice Note: Priority between security interests.
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