Other
DF SGS 8 Consolidation
- Module
- Debt finance
Comprehensive exam notes on SGS 8 debt finance based on the learning outcomes and small group session activities at BPP.
[Show more]
Content preview
Assets and PrioritiesASSETS ON THE BALANCE SHEET
Asset Security Interest Perfection
Usual practice is to register charges over assets S.859 CA 2006: all securities registered @ CH:
This is the case in spite of the Financial Collateral (1) Send MR01, certified copy of security doc & fee;
All assets Regulation that covers: (2) 21 days beginning w/t 1 day after charge created
Bonds, cash and shares (3) otherwise security is VOID against liquidator and debt becomes immediately
repayable
Legal Mortgage
(1) transfer shares into bank’s name
(2) issue new share certificate to bank
Investment in Legal mortgage; or (3) register the ban as owner in registers of members of subsidiaries
subsidiaries Equitable mortgage; or Equitable Mortgage/fixed charge
Fixed charge (1) share certificate deposited w/t bank for safekeeping
(2) Stock Transfer Form: executed but undated
(3) Power of Attorney so that bank can complete the STF
Properties Charge by way of legal mortgage – s.87 LPA 1925 Register at Land Registry (registered land)
Future Prop. Charge by way of legal mortgage – s.87 LPA 1925 Further Assurances clause allows bank to upgrade fixed charge to CBWLM
Co to enter into Supplemental Debenture -> creates CBWLM
If not -> Further Ass. + PoA clauses allow bank to perfect security
Receivables Fixed charge; or Legal assignment – s.136 LPA 1925 Notice
(debtors) Legal assignment (1) Notice of assignment or charge to other party
Fixed Charge
NB: always check if assets/contracts are assignable (1) Notice is a matter of good practice, not a requirement
Investments Legal mortgage; or Same as investment above
(if portfolio not Equitable mortgage; or
trading Fixed charge NB: if foreign law security were taken, foreign law advice would be needed as to
frequently) NB: foreign shares -> foreign security to be created perfection requirement
over asset(s) + foreign lawyers needed (exp’s)
Cash & cash Floating charge Floating charge => Companies House registration
equivalents Fixed charge only re deposit a/c Fixed charge => notice to bank (good practice!)
Machinery Fixed charge Affix a notice on the machinery?
Stock/inventory Floating charge Floating charge => Companies House registration
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller daryalevchenko. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £3.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now