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F – Financial Collateral Arrangements

 

2/11/12

RE LEHMAN BROTHERS INTERNATIONAL (EUROPE) (IN ADMINISTRATION) [2012] EWHC 2997 (Ch)

An agreement which conferred a “general lien” on company property comprising money and de-materialised securities, and a right to realise the property in satisfaction of liabilities and obligations in the event of default, did not create a lien in the strict sense because a lien can only apply to tangible property.  Its effect was to create a floating charge.  The charge did not fall within the Financial Collateral Arrangements (No 2) Regs 2003, because it was created before the Regs were implemented and the collateral-taker did not have sufficient possession or control of the charged property.