Further reduction in value of charge which is not of adequate valueU.K.
7(1)If at any time after a loan is made—U.K.
(a)the loan is secured by a charge which is not of adequate value, and
(b)an event mentioned in sub-paragraph (2) occurs,
there is an unauthorised payment.
(2)The events are—
(a)the loan ceasing to be secured by a charge,
(b)a charge being given which does not comply with conditions A or C,
(c)a reduction in the value of the assets charged which does not comply with condition B, and
(d)the charge ceasing to comply with condition C.
(3)The amount of the unauthorised payment is—
where—
AAE is amount 2 (see paragraph 13) calculated after the event, and
ABE is amount 2 (see paragraph 13) calculated before the event.
(4)Paragraph 1 defines conditions A, B and C.
Commencement Information
I1Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284