Regulation 40 Special rules about debentures

Sections 882 and 883 apply to LLPs, modified so that they read as follows—

“Charge in series of debentures

882.

(1)

Where a series of debentures containing, or giving by reference to any other instrument, any charge to the benefit of which the debenture-holders of that series are entitled pari passu, is created by an LLP, it is sufficient for purposes of section 878 if the required particulars, together with a copy of the deed containing the charge (or, if there is no such deed, of one of the debentures of the series) are delivered to the registrar before the end of the period allowed for registration.

(2)

The following are the required particulars—

(a)

the total amount secured by the whole series,

(b)

the dates of the determinations of the LLP authorising the issue of the series and the date of the covering deed (if any) by which the security is created or defined,

(c)

a general description of the property charged,

(d)

the names of the trustees (if any) for the debenture-holders, and

(e)

in the case of a floating charge, a statement of any provisions of the charge and of any instrument relating to it which prohibit or restrict or regulate the power of the LLP to grant further securities ranking in priority to, or pari passu with, the floating charge, or which vary or otherwise regulate the order of ranking of the floating charge in relation to subsisting securities.

(3)

Where more than one issue is made of debentures in the series, particulars of the date and amount of each issue of debentures of the series must be sent to the registrar for entry in the register of charges.

(4)

Failure to comply with subsection (3) does not affect the validity of any of those debentures.

(5)

Subsections (3) to (7) of section 878 apply for the purposes of this section as they apply for the purposes of that section but as if for the reference to the registration of the charge there was substituted a reference to the registration of the series of debentures.

Additional registration requirement for commission etc in relation to debentures

883.

(1)

Where any commission, allowance or discount has been paid or made either directly or indirectly by an LLP to a person in consideration of his—

(a)

subscribing or agreeing to subscribe, whether absolutely or conditionally, for debentures in an LLP, or

(b)

procuring or agreeing to procure subscriptions, whether absolute or conditional, for such debentures,

the particulars required to be sent for registration under section 878 shall include particulars as to the amount or rate per cent. of the commission, discount or allowance so paid or made.

(2)

The deposit of debentures as security for a debt of the LLP is not, for the purposes of this section, treated as the issue of debentures at a discount.

(3)

Failure to comply with this section does not affect the validity of the debentures issued.”.