281.This section amends the Companies Act 1985 and the Insolvency Act 1986 to give effect for statutory pledges to the general rule that a real right in security (broadly, a ‘fixed charge’ for insolvency purposes) will, if created prior to the attachment of a floating charge, rank above the floating charge. It does so in each case by amending the relevant definitions of “fixed security” in those Acts, with the effect that a fixed security includes a statutory pledge.
Commentary on Sections Part 2 – Security over Moveable Property Ranking of pledges etc. Section 61 – Amendment of Companies Act 1985 and of Insolvency Act 1986