Security & Collateral · glossary
A creditor with a promise and no claim on any particular asset. On an insolvency it shares what is left after the secured and preferential creditors, usually a small part of its debt. The prescribed part is kept for unsecured creditors such as trade suppliers. Chapter 1 · Chapter 6 · Chapter 9
Explained in Chapter 1, What Security Is For, of Security & Collateral.
Void here means treated as if the charge had never been made. A liquidator or an administrator would treat the Bank as an unsecured creditor: one claim among many, paid only a share. A later lender with a charge, or a creditor who has enforced a judgment against the asset, could ignore the charge too.Read Chapter 6, Twenty-One Days: Registration and Perfection →
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