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Section 396 Charges which have to be registered.C1X1

United Kingdom

(1)

Section 395 applies to the following charges—

(a)

a charge for the purpose of securing any issue of debentures,

(b)

a charge on uncalled share capital of the company,

(c)

a charge created or evidenced by an instrument which, if executed by an individual, would require registration as a bill of sale,

(d)

a charge on land (wherever situated) or any interest in it, but not including a charge for any rent or other periodical sum issuing out of the land,

(e)

a charge on book debts of the company,

(f)

a floating charge on the company’s undertaking or property,

(g)

a charge on calls made but not paid,

(h)

a charge on a ship or aircraft, or any share in a ship,

C2(j)

a charge on goodwill, F1or on any intellectual property.

(2)

Where a negotiable instrument has been given to secure the payment of any book debts of a company, the deposit of the instrument for the purpose of securing an advance to the company is not, for purposes of section 395, to be treated as a charge on those book debts.

(3)

The holding of debentures entitling the holder to a charge on land is not for purposes of this section deemed to be an interest in land.

F2(3A)

The following are 'intellectual property’ for the purposes of this section—

C3(a)

any patent, trade mark, F3. . . registered design, copyright or design right;

(b)

any licence under or in respect of any such right.

(4)

In this Chapter, “charge” includes mortgage.

Annotations

Textual amendments

F1

Words substituted by Copyright, Designs and Patents Act 1988 (c. 48, SIF 67A), s. 303(1), Sch. 7 para. 31(2)

F2

S. 396(3A) inserted by Copyright, Designs and Patents Act 1988 (c. 48, SIF 67A), s. 303(1), Sch. 7 para. 31(2)

F3

Words in s. 396(3A)(a) repealed (31.10.1994) by 1994 c. 26, s. 106(2), Sch. 5; S.I. 1994/2550, art. 2

Modifications

C1

S. 396 applied (with modifications) (6.4.2001) by S.I. 2001/1090, reg. 4, Sch. 2 Pt. I

C2

S. 396(1)(j) extended by Patents, Designs and Marks Act 1986 (c. 39, SIF 67A), s. 2, Sch. 2 Pt. I para. 1(k)(i)

C3

S. 396(3A)(a) amended (31.10.1994) by 1994 c. 26, s. 106(1), Sch. 4 para. 1(2); S.I. 1994/2550, art. 2

Editorial notes

X1

Ss. 395-424 are prospectively replaced by Companies Act 1989 (c. 40), Pt. IV (ss. 92-107) but, having regard to the lapse of time since those amending provisions were enacted without having been bought into force, they are not reproduced here.

Notes on Part XII

Modifications

C1

Pt. XII (ss. 395 - 424) extended (with modifications) by S.I. 1989/638, regs. 18, 21, Sch. 4 para. 4

C2

Pt. XII (ss. 395-424) excluded (21.2.2009) by Banking Act 2009 (c. 1), ss. {252(2)(a)}, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 11

Notes on Chapter I

Textual amendments

F1

Ss. 395-424 repealed (1.10.2009) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 (with arts. 5, 7, 8, Sch. 2 (as amended by S.I. 2009/1802, art. 18, Sch.))