Regulation 37 Avoidance of certain charges

Section 874 applies to LLPs, modified so that it reads as follows—

“Consequence of failure to register charges created by an LLP

874.

(1)

If an LLP creates a charge to which section 860 applies, the charge is void (so far as any security on the LLP’s property or undertaking is conferred by it) against—

(a)

a liquidator of the LLP,

(b)

an administrator of the LLP, and

(c)

a creditor of the LLP,

unless that section is complied with.

(2)

Subsection (1) is subject to the provisions of this Chapter.

(3)

Subsection (1) is without prejudice to any contract or obligation for repayment of the money secured by the charge; and when a charge becomes void under this section, the money secured by it immediately becomes payable.”.