Companies Act 2014 section 425

Saving of rights of certain mortgagees in case of re-issued debentures

Section 425 protects the rights and priorities of mortgagees and other charge holders when debentures that were originally redeemed before 1 April 1964 are subsequently re-issued on or after that date.

• Where debentures redeemed before 1 April 1964 are re-issued on or after that date, the re-issue must not prejudice existing rights or priorities under any charge created before that date
• These rights are treated as if the relevant earlier legislation (section 104 of the Companies (Consolidation) Act 1908) had been carried forward into the later Companies Acts
• The protection applies regardless of whether the re-issue occurred under the Companies Act 1963 or under the Companies Act 2014
• This saving provision overrides the general power to re-issue redeemed debentures set out in section 424 of the Companies Act 2014

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