25 Jan, 2017
This is the sixth in the series of insolvency papers which we have been launching over recent weeks.
This paper considers the impact of administration or liquidation on a secured creditor’s rights under a charge on a company’s rental income, whether from land or chattels. Topics covered include rights under legal and equitable mortgages on land, specific charges on rental income from land, issues of characterisation as a fixed or floating charge, how this is plays out where rent represents the ‘fruits’ of a fixed charge asset or is credited to a blocked account, and the position where the creditor has only a generic charge on book debts. Consideration is also given to assignments of rental income, as well as the position of the liquidator or administrator when a secured creditor is seeking to enforce.
To read the article in full please click here.