HC Deb 18 July 1985 vol 83 c600

Amendments made: No. 110, in page 76, line 38. leave out from beginning to end of line 16 on page 77 and insert— '(2) Subject to subsection (3) below, the time at which a floating charge is created by a company is a relevant time for the purposes of this section if the charge is created—

  1. (a) in the case of a charge which is created in favour of a person who is connected with the company, at a time in the period of two years ending with the commencement date;
  2. (b) in the case of a charge which is created in favour of any other person, at a time in the period of twelve months ending with that date; or
  3. (c) in either case, at a time between the presentation of a petition for the making of an adminstration order in relation to the company and the making of such an order on that petition.

(3) Where a company creates a floating charge at a time mentioned in subsection (2)(b) above and the person in favour of whom the charge is created is not connected with the company, that time shall not be a relevant time for the purposes of this section unless the company—

  1. (a) is unable to pay its debts within the meaning of section 518 of the 1985 Act at that time; or
  2. (b) becomes unable to pay its debts within the meaning of that section in consequence of the transaction under which the charge is created.

(3A) For the purposes of subsection (2) above the commencement date is—

  1. (a) in a case where this section applies by reason of the making of an administration order, the date of the presentation of the petition on which the order was made; and
  2. (b) in a case where this section applies by reason of a company's going into liquidation the date of the commencment of the winding up.'.

No. 111, in page 77, line 24, leave out subsection (5).—[Mr. Fletcher.]

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