Security & Collateral · glossary
Security given to whoever finances the purchase of an asset, over that asset only. The Debenture leaves room for it as Permitted Security, up to £750,000. The financier's money brought the asset in, so letting it rank first takes nothing from the Bank. Definition: Permitted Security · Chapter 7
Explained in Chapter 7, The Guarantor, the Group and the Negative Pledge, of Security & Collateral.
The Company needed one door left open. Manufacturers often buy machines on finance, and the lender takes security over the machine it paid for. Asking the Bank's consent each time would mean delay and a fee. Security given to whoever finances an asset, over that asset only, is purchase-money security.Read Chapter 7, The Guarantor, the Group and the Negative Pledge →
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.
security over an asset which the Company acquires after the date of this Debenture, given only to the person who finances that acquisition and securing only the price of that asset and the cost of financing it, where the total amount secured by all such security does not at any time exceed £750,000;Read the definition in the document →
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 →