Part 2Floating charges

Registration and creation etc.

38Creation of floating charges

1

It continues to be competent, for the purpose of securing any obligation to which this subsection applies, for a company to grant in favour of the creditor in the obligation a charge (known as a “floating charge”) over all or any part of the property which may from time to time be comprised in the company’s property and undertaking.

2

Subsection (1) above applies to any debt or other obligation incurred or to be incurred by, or binding upon, the company or any other person.

3

From the coming into force of this section, a floating charge is (subject to section 39 of this Act) created only when a document—

a

granting a floating charge; and

b

subscribed by the company granting the charge,

is registered in the Register of Floating Charges.

4

References in this Part to a document which grants a floating charge are to a document by means of which a floating charge is granted.