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.