Economics 3366A/B Study Guide - Quiz Guide: Floating Charge
22 Sep 2020
School
Department
Course
Professor
Document Summary
Catholic creditor should act in such a way as tomitimise impact on secondary creditor. Example: x has security over plots a and b. y has security over plot b. x is first ranking creditor. The rules apply to implied securities and judicial securities as well as voluntary securities. This does not apply to floating charges - forth and clyde. A standard security can be either, but in practice it will be in the formulation "all sums due and to become due". Framed in this way because it is typically for a lengthy period of time, and there is the potential for the borrower to want to borrow more. Remember there are 2 rights: personal; and real: Uk acorn finance v smith - confirms that you have to transfer the two rights, you cannot transfer one right alone. Anything left over is paid to debtor (or unsecured creditors).
