Security & Collateral · glossary
Cash, goods or services given to a company when or after it creates a floating charge. Section 245 of the Insolvency Act strikes down a recent floating charge except to the extent of new money. The Bank lent the whole term loan six days after signing, so its charge stands. Chapter 9
Explained in Chapter 9, Enforcement and the Waterfall, of Security & Collateral.
The one aimed at floating charges is section 245 of the Insolvency Act. It strikes down a floating charge created in the twelve months before the insolvency, or two years if the lender is connected with the company. The exception is new money. The charge stands for any cash, goods or services given to the company when or after it was created, and for any of its debts paid off then.Read Chapter 9, Enforcement and the Waterfall →
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