Perfecting security in loan transactions
Perfecting security in loan transactions

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • Perfecting security in loan transactions
  • Perfecting security by registration at Companies House
  • What to register and when
  • How to register security at Companies House
  • Forms and precedents
  • Perfecting security by registration at specialist registries
  • Perfecting security by notice to a third party
  • Precedent forms of notice

STOP PRESS—Coronavirus (COVID-19) and registration of charges at Companies House: The content of this Practice Note is affected by the Companies etc (Filing Requirements) (Temporary Modifications) Regulations 2020, SI 2020/645 (the Regulations), which temporarily extend some deadlines for filing documents or notices with Companies House. In so far as it may affect the content below, the Regulations:

  1. extend the period for filing charges under section 859A of Companies Act 2006 (CA 2006) from 21 days to 31 days beginning with the day after the date of creation of the charge—Companies House guidance issued on 1 July 2020 states that this applies to charges created on or after 6 June 2020

  2. extend the period for registration of instruments of alteration of floating charges granted by Scottish companies under section 466 of the Companies Act 1985, and

  3. increase to 42 days the period for notification of the place where copies of instruments creating charges are kept under CA 2006, s 859Q

The temporary extension does not apply to periods for registration extended by an order of the court under CA 2006, s 859F.

The Regulations came into force on 27 June 2020 and expire on 5 April 2021.

For transactions which involve security, it is extremely important to ensure that all perfection requirements are dealt with after completion. The lawyers acting for the lender(s) will usually deal with perfection

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