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Payment of
certain debts
out of assets
subject to
floating
charge in
priority to
claims under
the charge.

Registration
of charges

Ch. 31. No. 1.] Companies.

 

78. (1) Where either a receiver is appointed on behalf of
the holders of any debentures of the company secured by a
floating charge, or possession is taken by or on behalf of
those debenture holders of any property comprised in or
subject to the charge, then, if the company is not at the
time in course of being wound up, the debts which in every
winding up are under the provisions of Part V_ of this
Ordinance relating to preferential payments to be paid in
priority to all other debts, shall be paid out of any assets
coming to the hands of the receiver or other person taking
possession as aforesaid in priority to any claim for principal
or interest in respect of the debentures.

(2) The periods of time mentioned in the said
provisions of Part V of this Ordinance shall be reckoned
from the date of the appointment of the receiver or of
possession bemg taken as aforesaid, as the case may be.

(3) Any payments made under this section shall be
recouped as far as may be out of the assets of the company
avallable for payment of general creditors.

PART III.
REGISTRATION OF CHARGES.
Registration of charges with Registrar.

79. (1) levery charge created after the commencement of
this Ordinance by a company registered in the Colony and
bemg a charge to which this section applies shall, so far as
any security on the company’s property or undertaking is
conferred thereby, be void against the liquidator and any
creditor of the company, unless the prescribed particulars of
the charge, together with the instrument, if any, by which
the charge is. created or evidenced, are delivered to or
received by the Registrar for registration in manner required
by this Ordinance within twenty-one days after the date of
its creation, but without prejudice to any contract or
obligation for repayment of the money thereby secured,
and when a charge becomes void under this section the
money secured thereby shall immediately become payable.

(2) This section applies to the following charges—
(a) a charge for the purpose of securing any issue of
debentures ;