Article 13DD Floating chargesF1

(1)

This Article applies where there is an uncrystallised floating charge on the property of a company for which a moratorium is in force.

(2)

During the moratorium, the holder of the floating charge may not give any notice which would have the effect of—

(a)

causing the floating charge to crystallise, or

(b)

causing the imposition, by virtue of provision in the instrument creating the charge, of any restriction on the disposal of property of the company.

(3)

No other event occurring during the moratorium is to have the effect mentioned in paragraph (2)(a) or (b).

(4)

Paragraph (5) applies where—

(a)

the holder of a floating charge (“the chargee”) is prevented by paragraph (2) from giving a notice mentioned there during the moratorium, and

(b)

under the terms of the floating charge, the time for giving such a notice ends during the moratorium or before the chargee is given notice of the end of the moratorium under Article 13CH.

(5)

The chargee may give notice later than is required under the terms of the floating charge, but only if the chargee does so as soon as is practicable after—

(a)

the end of the moratorium, or

(b)

if later, the day on which the chargee is notified of the end of the moratorium.

(6)

Where—

(a)

paragraph (3) prevents an event which occurs during the moratorium from having the effect mentioned there, and

(b)

the holder of the floating charge gives notice of the event to the company as soon as is practicable after—

(i)

the end of the moratorium, or

(ii)

if later, the day on which the chargee is notified of the end of the moratorium,

the event is to be treated as if it had occurred when the notice was given.

(7)

This Article does not apply in relation to a floating charge that is—

(a)

a collateral security (as defined by Article 13DI);

(b)

a market charge (as defined by Article 13DI);

(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 Article 13DI).

Annotations

Textual amendments

F1: Pt. 1A inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), ss. 4(1), 49(1) (with ss. 2(2), 5(2))

Notes on Part 1A

Modifications

C1: Pts. 1-5 modified by S.R. 2004/307 (as amended (1.10.2006) by Limited Liability Partnerships (Amendment) Regulations (Northern Ireland) 2006 (S.R. 2006/377), reg. 3, Sch. 2; (temp.) (27.4.2020 retrospective) by virtue of Corporate Insolvency and Governance Act 2020 (c. 12), Sch. 11 para. 8(1)(2), 14 (with ss. 2(2), 5(2)); (26.6.2020) by The Limited Liability Partnerships (Amendment etc.) Regulations 2020 (S.I. 2020/643), reg. 1(1), Sch. 2 (with reg. 3); (16.2.2021) by The Limited Liability Partnerships (Amendment etc.) Regulations 2021 (S.I. 2021/60), reg. 1(1), Sch. 2 (with reg. 4(2)))
C2: Pts. 1-5 applied (with modifications) (4.1.2024) by S.I. 2021/716, Sch. 1A para. 3 (as inserted by The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399), reg. 1(2), Sch. 1)