Crystalisation

Question 1

Yorkshire Woolcombers

Answer 1

Definition of Floating Charge - over a class of assets present and future, the asset being capable of being used in the ordinary course of business - mortgagor free to deal

Question 2

Illingworth -v- Houldsworth

Answer 2

Floating Charge - can deal with the subject of the charge as if the charge not in place (book debts)

Question 3

Smith -v- Bridgend - Coslett Case

Answer 3

Ordinary Course of Business, Large machines, retained for works, not security

Question 4

Interview Limited

Answer 4

Appointment of Receiver will crystalise. Ambulatory and shifting in nature

Question 5

Latzur Limited

Answer 5

De-crystallisation - commencement of winding up -v- examinership

Question 6

JD Brian

Answer 6

Automatic crystalisation clause - allowed leapfrog - corrected by EU Directive

Question 7

Re Woodgriffe

Answer 7

Cessation of business will crystalise a charge

Question 8

Monolithic Building Co

Answer 8

Unreg Charges - subsequent chargeholder took priority

Question 9

Lombard -v- Amurec

Answer 9

Stamp cert issue - over 21 days - CRO issued Cert of Reg which was conclusive evidence of registration

Question 10

Manning Furniture

Answer 10

Joplin Proviso - protects the rights of preferential creditors

Question 11

Frank Bell

Answer 11

Lok at conduct - BOS charge took priority over charge in favour of Bell

Question 12

Resinoid -v- Mica

Answer 12

3/5 - 6 month installments. late registration could not displace other creditors

Question 13

International Retail

Answer 13

One that sits on their hands cannot displace creditors that did register

Question 14

Victoria Housing -v- Ashburn

Answer 14

Extension may be refused of w/up is imminent

Question 15

National Westminister -v- Spectrum

Answer 15

Book Debts - charge that is fixed in nature will prevent dealings with book debts by blocked account

Question 16

Siebe Gorman -v- Barclays

Answer 16

Account that allows withdrawals as they please is not a blocked account

Question 17

Keenan Bros

Answer 17

Fixed charge - special account required - must look at control

Question 18

Wogans Drogheda

Answer 18

Allowed company to collect debts and had no control over the account. 1st held floating charge - COA if account is suspended, will not the deprive the chargeholder of rights of fixed charge. - WIDELY CRITISISED

Question 19

Holidair

Answer 19

Same debenture as Wogan - held - not admissable to have regard to the conduct of the parties after the agreement.

Question 20

Chaigley Forms

Answer 20

Simple ROT - Not reg - dead cattel

Question 21

Charles Dougherty

Answer 21

Animal Feed - simple RT not complex enough to require registration - pre 409

Question 22

Carroll Group

Answer 22

Proceeds of Sale - registerable - All the characteristic of fixed charge - registerable and void. No account, no fiduciary duty

Question 23

Unitern Heating

Answer 23

Look at the language in the clause - no fiduciary relationship, registerable and void

Question 24

Borden -v- Scottish Timber

Answer 24

Mixed goods - registerable - goods mixed irreversibly cannot rely on a simple ROT clause to retain title

Question 25

Romalpa

Answer 25

All sums due clause - not registerable. goods that remained identifiable were sold under agency relationship which created a fiduciary duty and seller entitled to trace goods