Security & Collateral · glossary
The protection a company gets once it is in administration. While it lasts, nobody may enforce security or sue the company without the administrator's consent or the court's permission. It binds the Bank too, even though the Bank appointed the administrator. Chapter 9
Explained in Chapter 9, Enforcement and the Waterfall, of Security & Collateral.
Administration costs the Bank in two ways. The first is the moratorium: while it lasts, nobody may enforce security or sue the Company without the administrator's consent or the court's permission. That binds the Bank too (paragraph 43 of Schedule B1). The second is money, because the administrator's expenses come out of the floating-charge assets before the Bank gets any of them.Read Chapter 9, Enforcement and the Waterfall →
Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.Chapter 1 of Security & Collateral and this glossary are free to read; the rest of the edition is in the Library, at €12 a month or €79 for a Year Pass.
Related terms
Where this term lives
This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Security & Collateral → · All terms A–Z →