Share Charges means the first priority share charges over all the shares of each of the Rig Owners collateral to this Agreement as security for the Obligors’ obligations under the Finance Documents in the form and substance satisfactory to the Agent on behalf of the Finance Parties.
How does a share charge work?
Lenders often take share charges as security for the monies owing to them by a borrower under a loan agreement. A share charge will typically enable the lender to take control of the company in which shares are held upon enforcement.
What is a charge agreement?
A charge is an agreement between the chargor and the chargee which gives the chargee a right to sell the asset and to apply the proceeds in discharging the obligations of the chargor. A charge is a useful means of creating a security over future assets.
Is a share pledge a charge?
the articles of association of the company whose shares are to be pledged allow the granting of such a security and there are no specific restrictions; … there are no other charges or encumbrances registered against the pledged shares; and. the pledged shares are fully paid up at the time of taking the security.
How do I register a share charge?
How is a newly created charge registered?
- Complete form MR01 (or LLMR01 if the charge has been created by a Limited Liability Partnership). …
- Attach a certified copy of the deed, or document created to support the newly created charge. …
- Pay the registration fee.
Is a share charge a fixed charge?
Shares are usually charged by way of a mortgage or fixed charge. … Uncertificated shares can be secured by an equitable or legal mortgage.
Can I put a charge on my own property?
If you have joint ownership of your property with someone and the debt is in both your names, the court can make a charging order on the whole property. If the debt is only in your name and the property is in joint names, the court can only make a charging order on the share of the property you own.
What is a charge on an asset?
Related Content. Security over an asset which gives the lender the right to have the particular asset and its proceeds of sale appropriated to the discharge of the debt in question. A charge does not transfer ownership; it is merely an encumbrance on the asset.
How long does a charge on your house last?
Does a charging order expire after 12 years? The charging order on your home is recorded on the Land Registry until you pay the debt in full. It can then be removed by applying to the Land Registry.
What is the difference between charge and pledge?
According to the generally accepted definition, a ‘pledge’ is a bailment of personal property as security for some debt or engagement, redeemable on certain terms, and with an implied power of sale on default. … Unlike a pledge, a ‘charge’ is not a transfer of property of one to another.
Does a share pledge need to be registered?
Standard Terms. The drafting in some share pledges agreements can have the effect of creating a personal guaranteee by the pledgor to meet the borrower’s payments under a facility agreement. … There is no requirement to register a Scots law shares pledge at Companies House, but is common place to do so.