LPC Law Notes Finance and Capital Markets Notes
A collection of the best Capital Markets and Loans* notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short, these are what we believe to be the strongest set of Capital Markets and Loans notes available in the UK this year. This collection is...
The following is a more accessible plain text extract of the PDF sample above, taken from our Finance and Capital Markets Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
Provided they have all been registered properly under s.860 CA:
Fixed charge or a mortgage beats a floating charge over the same asset
If more than one fixed charge over same asset, it is priority of creation date
If more than one floating charge over same asset, it is priority of creation date
Registration |
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Late Registration |
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No Registration |
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It is a contractual promise not to give any more security over the asset without the creditor’s consent
It will be entered into Form MG01 when the charge is registered to ensure 3rd Ps have actual knowledge
If more security is given anyway: if the new fixed charge holder has actual knowledge of the negative pledge given to a floating charge holder, then he will lose his priority over them
Powers of Secured Creditors
Creditor wants to ensure they are in the best position to recover their money if Co. gets into financial difficulty and therefore they want to secure the debt against the debtor by charging the debtors property by means of:
The Creditor has a… | Can APPOINT |
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Fixed Charge A charge that attaches immediately to a fix asset belonging to Co. (premises, machinery) Created by deed. | LPA Receiver
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Floating Charge A charge that attaches immediately to a group of assets belonging to Co. which may change from day to day (stock, debtors but usually the whole undertaking i.e. everything Co owns.) | Administrator
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Floating Charge (created pre-15/09/03) | Administrative Receiver or Administrator
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Powers of Unsecured Creditors
Petition for the company’s liquidation by either statutory demand or execution of judgment
Suggest a CVA
Apply to court to put the company into administration
Challenging Antecedent Transactions
Always do a timeline of the transaction!
To protect the public, a liquidator, creditor or secretary of State may apply to disqualify a director.
UNFIT TO RUN A COMPANY
Definitions | Transaction that puts creditor, surety or guarantor in a better position on insolvency & Co. desired this | Any creation of a floating charge where there was no fresh consideration | A Co. transfers asset for no consideration or less than value of asset. |
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Step | Preferences s.239 | Avoidance of Floating Charge s.245 | Transaction at Undervalue s.238 |
Is it a suspicious transaction? | Either no consideration was given or a creditor has been put in a better position | ||
Who can challenge it? | Liquidator or Administrator with the court’s consent (s.239(1) and (2)) | None required because the charge is automatically void | Liquidator or Administrator with the court’s consent (s.238(1) and (2)) |
When can it be challenged? | After the company has become insolvent | ||
Is it within the definition? |
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Is it within the relevant time? s.240 Relevant time = time when the creditor presented his petition for winding up the Co. | There is a Connected Person Transactions two years before the onset of insolvency (s.240(1)(a)) No Connected Person Transactions six months before the onset of insolvency (s.240(1)(b)) | There is a Connected Person Transactions two years before the onset of insolvency (s.240(1)(a)) No Connected Person Transactions twelve months before the onset of insolvency (s.240(3)(b)) | There is a Connected Person Transactions two years before the onset of insolvency... |
Buy the full version of these notes or essay plans and more in our Finance and Capital Markets Notes.
A collection of the best Capital Markets and Loans* notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short, these are what we believe to be the strongest set of Capital Markets and Loans notes available in the UK this year. This collection is...
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