# The Insolvency (Northern Ireland) Order 1989, Article 13HC: 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 paragraph (1) to anything done with a view to obtaining a moratorium includes any preliminary decision or investigation.
(3) In paragraph (1) “receiver” includes a manager and a person who is appointed both receiver and manager.
(4) Paragraph (1) does not apply to a provision in an instrument creating 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).

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Source: https://www.legislation.gov.uk/nisi/1989/2405/article/13HC (the official version)
Page: https://openlegislation.uk/insolvency-northern-ireland-order-1989/article-13HC
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.