Secured lending United Kingdom insolvency law
1 secured lending 1.1 debentures 1.2 registration 1.3 fixed , floating charges 1.4 equivalents security secured lending the bank of england (est 1694) lender other banks, @ interest rate set monetary policy committee under bank of england act 1998. when lending on money businesses @ higher interest rate, banks contract fixed , floating charges decrease risk , stabilise profits. while uk insolvency law fixes priority regime, , within each class of creditor distribution of assets proportional or pari passu, creditors can jump priority ladder through contracts. contract security interest, traditionally conceptualised creating proprietary right enforceable against third parties, allow secured creditor take assets away, free competing claims of other creditors if company cannot service debts. first , foremost function of security interest: elevate creditor s place in insolvency queue. second function of security allow creditor trace value in asset through different people, should property...