Regulation 154 Creation of security interests

(1)

A protected cell company may only create or assert a security interest over assets held by the protected cell company on behalf of a part of the protected cell company if the security interest does not secure a liability or obligation which is incurred on behalf of, or which is attributable to, another part of the protected cell company.

(2)

A protected cell company may only create or assert a security interest over the undertaking of part of the protected cell company if the security interest does not secure a liability or obligation which is incurred on behalf of, or which is attributable to, another part of the protected cell company.

(3)

A security interest is void if it contravenes the requirements of paragraph (1) or (2).

(4)

In this regulation, “security interest” means—

(a)

a lien, pledge, charge or mortgage; or

(b)

a standard security, assignation in security or any other right in security constituted under the law of Scotland, including any heritable security.