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12 Liability of Lenders for the Acts of Receivers They Appoint

From: Principles of Lender Liability

Parker Hood

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2021. All Rights Reserved.date: 25 September 2021

Subject(s):
Debenture — Liquidated and unliquidated monetary obligations — Secured lender selling asset at an undervalue — Remedies for lenders’ breaches — Banker-customer contract
12.01 When a secured creditor (ie a lender) has a debenture1 (in England) or a floating charge (in Scotland) over the assets of a financially troubled company or limited liability partnership,2 then, provided that floating security3 was granted prior to 15 September 2003,4 the lender can opt not to enforce the security themselves, but appoint an administrative receiver (in England), or a receiver (in Scotland) over the assets5 of that company or limited liability partnership.6 Such a person, called a receiver in both jurisdictions, has to be an insolvency...
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