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Qualifying floating charge
Practical Law UK Glossary 3-202-3140 (Approx. 4 pages)
Glossary
Qualifying floating charge
A floating charge created by an instrument which fulfils one or more of the following criteria:
- It states that paragraph 14 of Schedule B1 to the Insolvency Act 1986 applies to it.
- It purports to empower the holder of the floating charge to appoint an administrator under the charge.
- It purports to empower the holder of the floating charge to make an appointment which would be the appointment of an administrative receiver within the meaning of section 29(2) of the Insolvency Act 1986.
In the context of whether the charge entitles the holder of it to appoint an administrator using an out-of-court process, it is also important to determine whether that person is a qualifying floating charge holder.