Module 1 · Chapter 2

What the Company Owns, and Who Already Has a Claim

Before a bank lends against a company's assets, it checks two things. Does the company own them? And does any other lender already have a claim on them?

≈ 11 min read 8-question test

In this chapter

  • How a lender checks what the borrower owns
  • What the register of charges shows, and what it misses
  • How an old lender is paid off and released at the same moment

2.1Two checks before the loan is paid out

Security is worth something only if the borrower owns the asset and no other lender ranks ahead. A lender that already has a charge over the asset is usually paid first. So before the Bank lent, it wanted to know what the Company owns, whether it can prove it, and whether anyone else already holds security over those assets.

Key point

Prove what the borrower owns, and clear every earlier claim, before the money moves.

Also in this chapter

  1. Matching each asset to its proof
  2. What the register of charges shows, and what it misses
  3. A repaid loan still on the register
  4. Paying off a live lender at the same moment
  5. Writing a known claim into the Company's statement
  6. Holding the title documents
  7. Your job

Preview

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