What is a first ranking debenture?

UK First Ranking Debenture means the first ranking debenture dated the Original Effective Date between, amongst others, the UK Company, each UK Subsidiary (other than UK-LP) and the Collateral Agent, as amended, restated, supplemented or otherwise modified from time to time.

What is a first charge debenture?

With this type of charge, a lender can ensure it is the first creditor to recoup any outstanding debt if a borrower defaults on a loan. In essence, it grants the lender possession and ownership of a borrower’s asset in the event of non-payment, with any subsequent sale being used to pay off the remaining debt.

What is a debenture agreement?

A debenture is a loan agreement in writing between a borrower and a lender that is registered at Companies House. It gives the lender security over the borrower’s assets. Typically, a debenture is used by a bank, factoring company or invoice discounter to take security for their loans.

What is meant by priority of charges?

In other words, it is used as a “tie-breaker” where there are two or more of the same type of charge over a property. So, for example, if there are two fixed charges over a property, then the one that was created sooner (“first in time”) will take priority (“stronger in right”) ahead of the one created later.

What do you need to know about debentures?

A debenture is a document that lays down the terms and conditions of a loan, and provides clarity and security to lenders if the borrowing company becomes insolvent.

Which is paid first preferred or first debenture?

Preferred or First debentures are those which are, in the event of winding up of the company, paid first. ii. Ordinary or Second debentures are paid after the preferred, or first debentures have been redeemed. 6. As to Conversion: i.

Where can I find the date of my debenture?

Once the debenture is signed, it will be filed at Companies House, and you can use the Companies House website for free to find your company and look under the heading of charges. This will list any debentures charged on your company in date order.

When do debentures and floating charges need to be registered?

If a fixed charge and a floating charge exist over the same asset, the fixed charge takes priority in repayment, however. A debenture documents the terms agreed between lender and borrower, and is filed with the Registrar of Companies at Companies House. It should be registered when the loan is taken out, or within 21 days.