# Insolvency Act 1986, Section A52: Void provisions in floating charge documents


(1) A provision in an instrument creating a floating charge is void if it provides for the obtaining of a moratorium, or anything done with a view to obtaining a moratorium, to be—
(a) an event causing the floating charge to crystallise,
(b) an event causing restrictions which would not otherwise apply to be imposed on the disposal of property by the company, or
(c) a ground for the appointment of a receiver.
(2) The reference in subsection (1) to anything done with a view to obtaining a moratorium includes any preliminary decision or investigation.
(3) In subsection (1) “receiver” includes a manager and a person who is appointed both receiver and manager.
(4) Subsection (1) does not apply to a provision in an instrument creating a floating charge that is—
(a) a collateral security (as defined by section A27);
(b) a market charge (as defined by section A27);
(c) a security financial collateral arrangement (within the meaning of regulation 3 of the Financial Collateral Arrangements (No. 2) Regulations 2003 (S.I. 2003/3226));
(d) a system-charge (as defined by section A27).

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Source: https://www.legislation.gov.uk/ukpga/1986/45/section/A52 (the official version)
Page: https://openlegislation.uk/insolvency-act-1986/section-A52
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.