Security & Collateral · glossary
A promise made in a deed. Clause 2.1 is the Company's covenant to pay, and clause 5.1 its covenant to do what registration needs. A covenant from a failing company is worth little, so the Bank's solicitors make the filing themselves. Debenture §2.1 · Debenture §5.1 · Chapter 1 · Chapter 6 · see Financial covenants
Explained in Chapter 1, What Security Is For, of Security & Collateral.
The Company's promise is a covenant (a promise made in a deed). A missed filing hurts most when the borrower is insolvent, and a claim against an insolvent borrower is worth little.Read Chapter 6, Twenty-One Days: Registration and Perfection →
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