Section A52

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

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Source: legislation.gov.uk · retrieved 2026-09-04