Moratorium Chapter 4: sets out the effect of moratorium on the company and its creditors Restrictions on transactions
During a moratorium, the company may not obtain credit of more than £500 from a person, unless that person has been informed that a moratorium is in force for the company. This includes entering a conditional sale agreement, entering into a hire-purchase agreement under which goods are bailed or hired and where the company is paid in advance for the supply of goods and services. The requirement to inform (as set out in section A25(1)) may be satisfied by the company’s compliance with the publicity requirements set out in section A19 (as described in paragraph 101 above), depending on the circumstances.
	During a moratorium, the company cannot enter into a market contract, enter into a financial collateral arrangement, give a transfer order, grant a market charge or system-charge or provide collateral security (terms as defined in the Companies Act 1989, the Financial Collateral Arrangements (No. 2) Regulations 2003 (S.I. 2003/3226), the Financial Markets and Insolvency Regulations 1996 (S.I. 1996/1469) and the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 (S.I. 1999/2979)).