Part E Guarantees and Security, 29 Charges Over Shares and Other Securities
- Regulation of banks — Mortgage — Shares — Security interest — Security issuer
A charge over shares may be taken for various reasons. Where the security consists of a portfolio of listed securities, they will have their own ascertainable value and there will be a ready market for them in the event that the bank wishes to realize its security. A bank may also wish to take a charge over shares for other, less obvious reasons. For example, if it funds the acquisition of a commercial property by a company specifically incorporated for that purpose, it may wish to take a charge over shares from the equity investors. This chapter discusses legal charge; equitable charge over shares; validity of a security interest created over shares in a foreign company; charges over uncertificated securities; the need to deliver a charge over shares or other securities to the registrar of companies for registration within 21 days of its creation; and priorities of competing mortgages over shares.